Pedestrians are crossing the American multinational sportswear brand, Nike Store and its logo seen in Hong Kong.
Budrul Chukrut | Light Rocket | Getty Images
Shares of Nike fell in extended trading on Thursday after sneaker giant reported quarterly revenue that missed analysts ’expectations due to declining demand in North America.
Its stock has recently fallen more than 2%.
Here’s how Nike did its financial first quarter, compared to Wall Street expectations, based on a survey by Refinitive analysts:
- Earnings per share: $ 1.16 vs. $ 1.11 expected
- Revenue: $ 12.25 billion vs. $ 12.46 billion expected
The net income for the three months ended August 1 was $ 1.87 billion, or $ 1.16 per share, compared to $ 1.52 billion or 95 cents per share a year earlier. Which analysts expect শীর্ 1.11 to top a share.
Sales rose to 12. 12.25 billion from $ 10.59 billion a year ago. That was less than the 12.46 billion expected.
Sales in Greater China grew 11%, the smallest increase in its geography. In the past, the region has been one of Nike’s biggest revenue drivers.
Revenue in North America rose 15% to 8 4.88 billion. That was less than the 5.05 billion that analysts surveyed by Factset were looking for.
Digital sales for the Nike brand grew 29% year-over-year. The retailer is investing in a suite of its websites and mobile apps. This has been especially beneficial during health crises, when many people have decided to shop from their homes.
Nike is working through factory closures in Vietnam, where it has made about 50% of its shoes and 30% of its clothing since mid-July.
After reporting fiscal fourth quarter in June, Nike said it expects annual revenue to grow at less than double the rate, exceeding 50 billion. But analysts recently lowered their expectations to $ 49.81 billion, according to a reflective survey. In a press release, Nike did not provide an updated forecast.
Shares of Nike rose nearly 13% until the market closed on Thursday, but fell nearly 9% from an all-time high reached in early August. The company has a market cap of 2 252.6 billion.
This story is evolving. Please look back for updates.
Find the full press release from Nike here.