The king in athletic and lifestyle wear, Nike, manages to stumble after reporting their fiscal 2018 first quarter results. Shares were relevantly down earlier this Wednesday due to the crippling performance the company has on domestic operations. The decline in local sales most specifically in North America has also barred last quarter’s figures.
According to Nike’s report, the first quarter which ended last August 31, 2017, produced mixed results with maintaining revenue growth on its international market but having to dip on local revenue in North America. The company’s Converse line also suffers the diminishing return locally, last quarter results were also bleak.
The sport’s apparel king’s shares were down by a massive 3.4% to $51.90 in earlier trading in New York time in trading. Overall the company managed to increase by a total of 5.7% this year alone, this is a big jump even with last year’s Dow Jones Industrial ranking for the company as the worst performing member in 2016.
The active wear’s diluted earnings per share for the latter quarter were at $0.57, down by a whopping 22%; the massive offset was driven by the huge decline in gross margin. The gross margin was highly dragged by the higher effective tax rate and the growth in other expenses, and by the partial lower selling and administrative expense and a lower average share count.
According to the CEO and President of NIKE Mark Parker, “This quarter, we captured near-term opportunities through our new Consumer Direct Offense,” and “Looking ahead to the rest of fiscal 2018, we will ignite NIKE’s next horizon of global growth through the strength of our brand, the power of our innovative products and the most personal, digitally-connected experiences in our industry.”
All-in-all the company, reported massive $9.1 billion revenue from the previous quarter; breaking the revenue down, the $8.6 billion came from the NIKE Brand and was up by 2% on a currency-neutral basis driven by growth in Greater China, EMEA, and APLA. The revenues for Converse were tallied to be at the $483 million, a massive 14% decline was felt last quarter on a currency-neutral basis due to the shrinking local sales in North America.
More on Nike’s Report
The company’s total gross margin was down by a whopping 180 basis points to 43.7%, the major drawback was because of the unfortunate swing in the currency exchange rates. The selling and administrative and selling expenses were down by 1% to $2.9 billion. Another expense net was at $18 million, a
Nike’s Share Purchase
Nike also managed to purchase a total of 15.3 million shares for approximately $849 million; this is the part of the company’s plan to purchase a total of $12 billion
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