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Nike Revenue Misses In Q1 as Supply-Chain Woes Weigh on Sales By Investing.com

by Mike Robinson

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© Reuters. Nike Earnings Beat, Revenue Misses In Q1

By Yasin Ebrahim

Investing.com – Nike (NYSE:) reported Thursday mixed first-quarter results as earnings beat, but revenue fell short of expectations as ongoing supply-chain issues held back sales.

After-hours trading saw Nike share prices fall by 4.06% following the announcement.

Nike posted earnings per share (EPS) of $1.16 for revenue of $12.25billion. Investing.com polled analyst to predict EPS at $1.12 on $12.46billion revenue.

Digital sales of the Nike brand rose 29% due to North America’s 43% growth. China is a crucial market for the company and sales there were up 11% at $1.98billion.

The company reported that inventory was flat at $6.7billion, in comparison to the preceding year. This is due to higher in-transit inventories because of “extended leadtimes from ongoing supply chains disruptions”.

The company’s direct business saw margin growth and a greater mix of full price sales, as well as favorable foreign exchange rate changes. This led to a 170 basis point increase in gross margin to 46.5 percent.

The company stated that these tailwinds were partly offset by increased product costs due to higher freight costs.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar

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