© Reuters.
Investing.com — Nike reported Thursday much better than expected fiscal first-quarter earnings that overshadowed a miss on revenue, pressured by weakness in North America and an economic slowdown in its key China market.
Nike Inc (NYSE:) rose more 2% in after-hours trade following the report.
Nike EPS of $0.94 on revenue of $12.94 billion. Analysts polled by Investing.com anticipated EPS of $0.75 on revenue of $13.02B.
Nike brand digital sales increased 2% but growth in EMEA, Greater China and APLA was partially offset by a decline in North America.
Sales in North America fell 2%, while in China, a key market for the company, sales rose 5% to $1.74B, though was short of StreetAccount estimates for $1.84 billion.
Gross margin decreased 10 basis points to 44.2%, pressured by “higher product costs and unfavorable changes in net foreign currency exchange rates, largely offset by strategic pricing action,” the company said.
