Nike Inc. (NKE, Financial) was among the stocks actively trading on Wednesday. The company posted upbeat earnings for its first quarter of 2018 after market close on Sept. 26. Shares were down more than 3% the day after the announcement. Earnings per share of 57 cents beat estimates of 48 cents. Quarterly revenue of $9.07 billion missed expectations of $9.08 billion, but increased 0.1% from the prior-year quarter.
The company said while North America wholesale revenues continued to decline, it had strong sales growth in its international geographies, especially China.
Nike brand revenues increased 2% to $8.6 billion, driven by growth in Greater China, Europe, the Middle East and Africa (EMEA) and Asia Pacific and Latin America (APLA) regions, including growth in sportswear. Revenues for Converse, however, declined 16% to $483 million.
Further, the gross margin declined 180 basis points to 43.7%, negatively impacted by changes in exchange rates.
Quarterly net income declined 24% to $950 million. Lower selling and administrative expenses were offset by the gross margin decline, a higher effective tax rate and growth in other expenses.
Diluted EPS decreased 22% from the prior-year quarter to 57 cents.
Chairman, President and CEOÂ Mark Parker emphasized the near-term opportunities through the company's new Consumer Direct Offense. His focus for fiscal 2018 is global growth through strengthening the brand and new, innovative products.
During the quarter, Nike repurchased approximately 15.3 million shares for approximately $849 million. This was part of its $12 billion repurchase program implemented in November 2015. As of Aug. 31, the company has repurchased a total of 95 million shares for approximately $5.3 billion.Â
Disclosure: The author holds no positions in any stocks mentioned.
