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Nike Q1 revenue up four per cent

  

For the first quarter Nike’s revenues were up four percent compared to the prior year. Sales were up eight percent. Gross margin decreased 220 basis points to 44 percent. Selling and administrative expense increased ten percent. Diluted earnings per share for the quarter were down 20 percent. The fall in gross margin was primarily driven by elevated freight and logistics costs, lower margins in Nike’s direct business driven by higher markdowns and unfavorable changes in net foreign currency exchange rates, including hedges, partially offset by strategic pricing actions. The overall decrease in margins was primarily driven by North America, which took measures to liquidate excess inventory through Nikedirect markdowns and wholesale marketplace actions.

Nike’s strategy is based on its competitive advantages, including the strength of the brand, deep consumer connections and pipeline of innovative product. Nike’s first quarter results set the foundation for another year of strong growth. The focus continues to be the consumer and action is being taken to navigate near-term dynamics while expanding long-term structural benefits through a Consumer Direct Acceleration strategy.

Nike, based in the US, is a leading maker of athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities.

 
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