Nike revenues missed analyst expectations for the first time in two years, but it beat Wall Street estimates for first-quarter profit.
Total revenues for the Nike brand were $12.4bn in its first quarter to 31 August 2023, up 3% year-on-year, while Converse sales slipped 9% to $587m. Yet, revenue for the quarter fell short of the $12.98bn analysts had expected, according to LSEG.
However, the sportswear giant’s posted a profit of $1.45bn, or 94 cents per share, beating estimates of 75 cents per share. It was boosted mainly by currency-neutral growth in Europe, the Middle East, and Africa, Greater China, and Asia-Pacific and Latin America, despite a decline in North American sales.
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The retailer maintained its full-year guidance of revenue growth in the mid-single digits.
Nike president and chief executive John Donahoe said:“Q1 offered proof of what Nike can deliver when we connect great innovation, great storytelling and great marketplace experiences to consumers.”
Nike executive vice president and chief financial officer Matthew Friend added: “Our first-quarter results demonstrated the impact of staying on the offense over the past fiscal year. With a healthy marketplace and another quarter of brand and business momentum, we are strengthening our foundation for sustainable, profitable, long-term growth.”
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