|NIKE exceeds expectations, on higher margins, earnings up 28%, to an AH all-time record of $91.90 up 5.4%,|
Regular hours, it was down $.51 to $87.18.
Nike Soars on Strong Start to Fiscal 2020
September 24, 2019
Shares of Nike Inc. (NYSE:NKE), a major spares apparel giant, reached a new all-time high in aftermarket trading on Tuesday on the heels of strong revenue and earnings performance during the company's first quarter of fiscal 2020.
For the quarter ending August 2019, the Beaverton, Oregon-based company reported net income of $1.367 billion, up 25% from net income of $1.092 billion from the prior-year quarter. Revenues of $10.66 billion, up 7% from the prior-year quarter, outperformed the Refinitiv estimate of $10.44 billion.
Company accelerates digital, sports and apparel revenue during the quarter
Nike CEO Mark Parker said during the earnings call that the company's strong start to fiscal 2020 "highlighted the depth and balance" of the company's strategy and initiatives, which include strong product innovation and robust digital experiences. The company said sports and apparel revenues increased in the double digits for the 22nd consecutive quarter, driven on strong customer demand for products like the AirMax 200 and the AirMax 270.
Parker also mentioned that the Nike+ App, the app that tailers to the customer, is currently available in 21 countries and will launch in China later in the year. Nike also announced a partnership with Tencent Holdings Ltd.-owned (TCEHY) WeChat, the Chinese social media giant. The global expansion of the Nike App and the Nike Sneakers App contributed to a 42% increase in digital sales growth for the quarter.
Nike Chief Financial Officer Andy Campion said revenues in Greater China increased 27% for the quarter, the 21st consecutive quarter of double-digit growth. Consumer sentiment in Nike's products remain strong despite geopolitical pressures, which include the U.S.-China trade war and the tariffs implemented in light of the trade war.