NIKE beats by $0.09, reports revs in-line; will guide on the call
- Reports Q1 (Aug) earnings of $0.57 per share, $0.09 better than the Capital IQ Consensus of $0.48; revenues rose 0.1% year/year to $9.07 bln vs the $9.08 bln Capital IQ Consensus.
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North America sales -3% (footwear -3%) to $3.9 bln; EMEA +4% $2.3 bln; China +9% $1.1 bln, A-Pac/Lat-Am +5% to $1.2 bln.
- Revenues for the NIKE Brand were $8.6 billion, up 2 percent on a currency-neutral basis driven by growth in Greater China, EMEA and APLA, including growth in Sportswear.
- Revenues for Converse were $483 million, down 16 percent on a currency-neutral basis, mainly driven by declines in North America.
- Gross margin declined 180 basis points to 43.7 percent due primarily to unfavorable changes in foreign currency exchange rates and, to a lesser extent, a higher mix of off-price sales.
- Inventories for NIKE, Inc. were $5.2 billion, up 6 percent from August 31, 2016, driven by a higher average cost per unit primarily due to product mix and, to a lesser extent, changes in FX rates and growth in NIKE Direct businesses.
- During the first quarter, NIKE repurchased a total of 15.3 million shares for ~$849 million as part of the four-year, $12 billion program approved by the Board of Directors in November 2015.
- Co will guide for Q2 and update FY18 guiadnce on the call at 17:00 -- previously guided for +MSD FY18 rev growth and modest gross margin contraction.