Nike Sees Major Growth in Fiscal 2019 First Quarter Earnings


Global sportswear company Nike has reported its 2019 fiscal year first quarter results, and the numbers are strong. Even though Converse revenues grew and Nike wholesale sales are growing faster than retail sales, the Nike, Inc’s stock is still down.

According to its latest financial report, Nike saw double-digit revenue growth, which was fueled by a “deep line up of innovation” and strong momentum. Per the report, diluted earnings per share for the quarter were $0.67, an increase of 18% as compared to quarter four of the 2018 fiscal year.

Revenues for Nike on a currency-neutral basis also increased 10%, amassing a total of $9.9 billion for the quarter. In addition, Converse revenues saw a 7% increase on a currency-neutral basis to $527 million.

Net income increased 15 percent to $1.1 billion, which Nike attributes to strong revenue growth, gross margin expansion, and selling and administrative expense leverage.

Perhaps the most staggering statistic laid out in the report is Nike’s gross margin, which was up 50 points to 44.2%. It claims this is due largely in part to higher selling prices and margin expansion, which is partially offset by higher product costs.

Moreover, Nike, Inc. repurchased a total of 17.8 million shares, approximately $1.4 billion, as part of the company’s four-year $12 billion program approved by the Board of Directors in November of 2015. In June 2018, the Board authorized another four-year $15 billion share repurchase program that will begin when the current program is completed — the latest effort in restructuring and consolidating the company’s debt.

“Nike’s Consumer Direct Offense, combined with our deep line up of innovation, is driving strong momentum and balanced growth across our entire business,” said Mark Parker, Chairman, President and CEO, Nike, Inc. “Our expanded digital capabilities are accelerating our complete portfolio and creating value across all dimensions as we connect with and serve consumers.”


2 Comments

  1. Before getting behind Kaepernick, I really wasn’t feeling Nike, and this goes back many years, dating back to the eighties. Now that there has been an effort to prove that they are not a *completely racist and sexist* company, one that has had a history of exploitation, exclusionary tactics not only in marketing, but within their design sectors in and on the campus in Beaverton. With the sexist and misogynist corporate attitudes that have been exposed over the past year also being challenged, I am warming up to them a bit. LeBron James has helped tremendously, as I am happy to see his public stance on the issues facing the Black community. Kaep has had my respect from the get go, and while Nike made this move to get behind him, which is obviously a business move first, it took some courage, albeit little risk, to make that move. Look at Under Armour. Their rep hasn’t recovered after being associated with the MAGA=”KKK” bullshit. Good for Nike. Good that they made the Black Lives Matter comment. Good that they’ve gotten behind a cause that supports the community that made them famous. Now I hope they support LeBron even more, matching, helping to build more schools like he did, then ALSO treating women equally in business, then encouraging all of their athletes to make a stand against oppression in every shape and form. If Nike can do this, they’d really make a difference in the world, gaining the undying respect of the people who really do matter, not the ones who remain willfully ignorant, while dressing up their insecurities in a top hat, tiki torches and tails.

    Fuck’em.

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