Pedestrians walk past the American multinational sport clothing brand, Nike store and its logo seen in Hong Kong.
Budrul Chukrut | LightRocket | Getty Images
Nike shares dropped in extended trading Thursday after the sneaker giant reported quarterly revenue that missed analysts’ expectations, due to softening demand in North America.
Its stock was recently down more than 2%.
Here’s how Nike did during its fiscal first quarter compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.16 vs. $1.11 expected
- Revenue: $12.25 billion vs. $12.46 billion expected
Net income for the three-month period ended Aug. 31 grew to $1.87 billion, or $1.16 per share, compared with $1.52 billion, or 95 cents per share, a year earlier. That topped analysts’ expectations for $1.11 a share.
Sales climbed to $12.25 billion from $10.59 billion a year earlier. That was short of expectations for $12.46 billion.
Sales in Greater China were up 11%, the smallest increase of its geographies. The region had been one of Nike’s biggest revenue drivers in quarters past.
Revenue in North America rose 15% to $4.88 billion. That was short of the $5.05 billion that analysts polled by FactSet were looking for.
Digital sales for the Nike brand rose 29% year over year. The retailer has been investing in its website and a suite of mobile apps. That has been especially beneficial during the health crisis, when many people have opted to shop from their homes.
Nike has been working through factory shutdowns in Vietnam, where it produces roughly 50% of its footwear and 30% of its apparel, since mid-July.
After reporting a blowout fiscal fourth quarter in June, Nike had said it was expecting annual revenue to grow at a low double-digit pace, surpassing $50 billion. But analysts recently lowered their expectations to $49.81 billion, according to a Refinitiv survey. In the press release, Nike didn’t provide an updated forecast.
Nike shares are up about 13% year to date, as of Thursday’s market close, but down about 9% from an all-time high reached in early August. The company has a market cap of $252.6 billion.
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Find the full press release from Nike here.