NIKE beats by $0.22, beats on revs, gross margin down 320 bps to 42.2%, North America revenue up 4%
- Reports Q1 (Aug) earnings of $0.49 per share, $0.22 better than the FactSet Consensus of $0.27; revenues rose 1.0% year/year to $11.7 bln vs the $10.99 bln FactSet Consensus.
- Total North America revenue increased 4% yr/yr to $5.02 bln.
- Total Greater China revenue decreased 10% in constant currency to $1.51 bln
- NIKE Direct revenues were $4.5 billion, down 4 percent on a reported basis and down 5 percent on a currency-neutral basis.
- Wholesale revenues were $6.8 billion, up 7 percent on a reported basis and up 5 percent on a currency-neutral basis.
- Gross margin decreased 320 basis points to 42.2 percent, vs. guidance for a decline of 350-425 bsp, primarily due to lower average selling price, reflecting higher discounts and channel mix, as well as higher tariffs in North America.
- Inventories for NIKE, Inc. were $8.1 billion, down 2 percent compared to the prior year, reflecting a decrease in units, partially offset by increased product costs, primarily due to higher tariffs in North America.