Sportswear giant Nike is to double down on drivers of success after a first quarter in which it beat earnings expectations but missed anticipated sales.
Nike posted net income of $1.45bn (£1.18bn) in the period to August 31, down 1% year on year. Sales, up 2% to $12.94bn (£10.57bn) were just below analysts’ expectations.
Revenues for the Nike brand of $12.4bn (£10.1bn) were up 3%, led by growth in regions such as Europe, the Middle East and Africa and Greater China, and “partially offset by a decline in North America”.
Revenues at Converse were down 9% to $588m (£480m) “due to a decline in North America, partially offset by growth in Asia”.
Nike said that gross margin fell 10 basis points, “primarily driven by higher product costs and unfavourable changes in net foreign currency exchange rates, largely offset by strategic pricing actions”.
Selling and administrative expenses climbed 5% driven by factors such as marketing costs and wages.
President and chief executive John Donahoe said: “Q1 offered proof of what Nike can deliver when we connect great innovation, great storytelling and great marketplace experiences to consumers.
“Moving forward, we are laser-focused on scaling these successes with greater consistency and speed as we continue to integrate and streamline our business. This is how we’ll extend our leadership position and drive growth over the long term.”
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