Nike Misses Q1 Revenue Estimates, Shares Fall

Nike Inc. reported results for the first quarter of 2022 that missed analysts’ expectations on the revenue side. Overall, the athletic giant on Thursday reported growth, with revenues for the quarter at $12.2 billion, up 16% year over year. However, this fell short of estimates of $12.46 billion in revenues from a survey of analysts. Net income was $1.9 billion, up 23% year over year, with diluted earnings per share increasing 22% to $1.16, versus an expected $1.11. Nike shares dropped in extended trading on Thursday and were down about 3% in the hour after it released earnings. Nike direct sales were $4.7 billion, up 28% on a reported basis and up 25% on a currency-neutral basis, largely bolstered by a 24% growth in owned physical retail that exceeded pre-pandemic levels of Q1 of fiscal 2020. According to data from Placer.ai, foot traffic at Nike stores did not surpass pre-pandemic levels in 2019 during June, July, and August. However, visits to Nike stores were up 39.6% in August compared to July and were up 22.1% during the week of September 6 compared to the same period in 2019. Digital sales for the Nike brand grew 29%. “Nike’s strong results this quarter are continued proof of our deep

Follow Footwear News on Twitter or become a fan on Facebook.

from Footwear NewsFootwear News https://ift.tt/3lRYyzB