This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEC4K06W_M.jpg
Nike Inc (NYSE:NKE) rose more 2% in after-hours trade following the report.
Nike reported EPS of $0.94 on revenue of $12.94 billion. Analysts polled by Investing.com anticipated EPS of $0.75 on revenue of $13.02B.
Nike brand digital sales increased 2% but growth in EMEA, Greater China and Asia-Pacific Latin America was partially offset by a decline in North America.
Sales in North America fell 2%, while in China, a key market for the company, sales rose 5% to $1.74B, though was short of StreetAccount estimates for $1.84 billion.
Gross margin decreased 10 basis points to 44.2%, pressured by “higher product costs and unfavorable changes in net foreign currency exchange rates, largely offset by strategic pricing action,” the company said.
The slip in margins wasn’t as bad as the previously guided 50 to 75 basis point decline, Wedbush said in a note Thursday, and warned that the guidance on the earnings call for the fiscal second quarter may fall short of estimates.
“Given that Q2 is the hardest revenue compare of the year, investors are bracing for an outlook that could fall shy of the Street’s +2% revenue growth and $0.93 EPS consensus forecast,” Wedbush added.
