Home / Knowledge / News / Apparel/Garments / Nike sees double digit revenue growth in Q1FY19

Nike sees double digit revenue growth in Q1FY19

27
Sep '18
Courtesy: Nike
Courtesy: Nike
Nike has seen double-digit revenue growth in the first quarter of fiscal 2019. It was driven by the continued success of the Consumer Direct Offense, which fueled growth across all geographies as well as wholesale and Nike Direct, led by digital. Diluted earnings per share for the quarter were $0.67, an increase of 18 per cent due to strong revenue growth.

For the reported period, revenues for the Nike Brand were $9.4 billion, up 10 per cent on a currency-neutral basis driven by double-digit growth internationally and in Nike Direct, strong momentum in North America, and growth in almost every category led by sportswear. Revenues for Converse were $527 million, up 7 per cent on a currency-neutral basis, mainly driven by growth in Europe and Asia.

"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."

Gross margin increased 50 basis points to 44.2 per cent in the first quarter primarily due to higher average selling prices, favorable full-price sales mix and margin expansion in Nike Direct, partially offset by higher product costs.

Selling and administrative expense increased 7 per cent to $3.1 billion. Demand creation expense was $964 million, up 13 per cent primarily driven by sports marketing investments, brand campaigns and key sports moments. Operating overhead expense increased 5 per cent to $2.1 billion driven by investments in capabilities to drive the Consumer Direct Offense, particularly in Nike Direct and global operations.

Net income increased 15 per cent to $1.1 billion driven primarily by strong revenue growth, gross margin expansion and selling and administrative expense leverage while diluted earnings per share increased 18 per cent from the prior year to $0.67 reflecting a 2.5 per cent decline in the weighted average diluted common shares outstanding.

Inventories for Nike were $5.2 billion, flat to prior year, primarily driven by a clean marketplace with healthy inventories across all geographies due to strong full-price sell through on new innovation. Cash and equivalents and short-term investments were $4.3 billion, $1.3 billion lower than last year as share repurchases, dividends and investments in infrastructure more than offset net income and proceeds from employee exercises of stock options.

During the first quarter, Nike repurchased a total of 17.8 million shares for approximately $1.4 billion as part of the four-year, $12 billion program approved by the board of directors in November 2015.

"We are delivering stronger global growth and profitability than we anticipated entering this fiscal year," said Andy Campion, executive vice president and chief financial officer, Nike, Inc. "While foreign exchange volatility has increased, our underlying currency-neutral momentum continues to build as we transform how Nike operates, drives growth and creates value for our shareholders." (RR)

Fibre2Fashion News Desk – India


Must ReadView All

New EU rules for a fairer online economy apply from Jul 12

E-commerce | On 11th Jul 2020

New EU rules for a fairer online economy apply from Jul 12

The European Commission recently published a set of resources to help ...

Pic: Inditex

Retail | On 11th Jul 2020

Inditex to invest €2.7 billion for 2020-2022 plan

Inditex, a Spanish fashion retailer, has announced that to accelerate ...

Pic: Shutterstock

E-commerce | On 11th Jul 2020

ING Bank launches fashion marketplace in Romania

ING Bank, the fourth-largest bank by assets in Romania, launched its...

Interviews View All

Akash Khetan, Narayan Tex Fab

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Neel Sawhney, One Friday

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Rahuul Jashnani, Jashn

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Larry Fontana,

Larry Fontana

Italy-based Lafer SpA is one of the most innovative surface finishing...

Kuldeep Pareek,

Kuldeep Pareek

Italian company Schoch Reeds has been producing high-quality weaving reeds ...

Poonam Naik Desai,

Poonam Naik Desai

Peekaboo is a sustainable, high quality, luxury sleepwear brand providing...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search