Nike topped Wall Street estimates for first-quarter profit as higher prices of its sneakers and apparel helped offset a hit from waning demand and persistent cost pressures.
On the strength of fewer planned markdowns and cheaper freight costs, the largest sportswear manufacturer in the world also predicted a 100 basis point rise in second-quarter gross margins, reversing six consecutive quarters of decreases.
Nike’s inventories decreased 10 per cent during the quarter that concluded on 31st August, showing that the company was effective in getting rid of surplus inventory before the holiday shopping season, allaying investor concerns that Nike would be compelled to give investors severe discounts.
“We will build on the consumer momentum around running and modern comfort,” Chief Financial Officer Matthew Friend said.
The business kept its annual projections the same and predicted a modest increase in revenue for the second quarter. According to LSEG statistics, analysts had predicted a 2.1% increase to US $ 13.59 billion. Analysts’ expectations of US $ 12.98 billion were not met by the corporation, which reported total sales of US $ 12.94 billion for the quarter. The business announced a US $ 1.45 billion profit.
