Nike revenues top predictions by $120m in first quarter

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Nike has beaten analysts’ expectations in its first quarter posting revenues around $120 million ahead of average predictions.

In the three months to August 31, prior to the brands controversial marketing campaign featuring former National Football League player Colin Kaepernick, Nike saw revenues jump 10 per cent to $9.95 billion (£7.5 billion)

This was largely driven by strong performance in North America, which accounts for roughly 42 per cent of the sportswear giant’s total revenues.

Sales in the region were up six per cent to $4.15 billion (£3.15 billion) showing a marked improvement on what has otherwise been a year of stagnant growth.

Meanwhile net profits hit $1.09 billion, rising 15 per cent compared to last year equating to 67 cents per diluted share, comfortably ahead of estimations of 63 cents per share.

Nike said guidance for the full year of revenue growth in the high single digits, while gross margins are expected to grow more quickly in the latter half of the fiscal year.

The sportswear giant’s shares hit a record high of $83.47 earlier this month, after taking a substantial hit following the reveal of its divisive marketing campaign.

At the start of September Nike unveiled its “Believe in something. Even if it means sacrificing everything campaign”, which featured the former NFL star Colin Kaepernick.

Kaepernick, a former NFL quarterback for the San Francisco 49ers, first made headlines in 2016 when he refused to stand up during the American national anthem.

The stunt, intended as a silent protest against police brutality, sparked the “take a knee” movement which saw hundreds of other players and athletes across different sports to follow suit.

The campaign soon went viral, with many taking to social media to post videos of them burning their Nike goods and call for a boycott of the brand.

It is thought to have ultimately paid off, despite even Donald Trump weighing in on the campaign.

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