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Leaders have maintained their profit forecasts for the rest of the year, citing the growing global trade war.
"We are on a better start to the fiscal year, and our currency-neutral growth and profitability exceed our expectations," said Campion. "At the same time, global trade uncertainty and geopolitical dynamics have resulted in a stronger dollar" and an increase in foreign exchange costs.
Investors were not all very impressed.
"10% revenue growth … it really needed to be a bit more than that," said Stacey Widlitz, president of SW Retail Advisors, a CNBC consulting firm.
It's the first quarter of the company since CEO Mark Parkerapologized in May for missing a sexual harassment scandal that rocked the Oregon-based sneaker maker and eliminated several senior executives earlier this year.
Here's what Nike reported for the 13-week period ended August 31, compared to the expectations of analysts polled by Thomson Reuters:
- Adjusted earnings per share: 67 cents versus 63 cents expected.
- Turnover: $ 9.95 billion against $ 9.94 billion expected.
Selling and administrative expenses increased by approximately 7% to $ 3.1 billion, including $ 964 million of expenses related to branding and sponsorship of major sporting events, Nike said.
Sales in Greater China, excluding currency, increased 20%, while sales in Asia Pacific and Latin America grew by 14% and Europe, Middle East and Africa grew by 9%.
Parker said in a statement that the company "is offering stronger global growth".
The results report follows Nike's Kaepernick ad campaign, which initially sent Nike's actions to the south and provoked a wave of reaction on social media. The professional football player has become a lightning rod for controversy after kneeling instead of standing up for the national anthem of the 2016 season to protest police brutality against people of color.
The stock has since rebounded, recently reaching a record high of 86.04 dollars per share. Stocks continued to climb in the days leading up to Tuesday's earnings report. Analysts say the campaign should actually boost sales, while Nike is leaning on young buyers who have supported Kaepernick in his journey.
Parker said executives are proud of the campaign, which debuted after the end of the quarter, claiming that it had resonated strongly with customers around the world and sparked a record engagement on social media.
He said the leaders "really feel very good and very proud of the work" that introduced the marketing campaign "Just Do It" to a new generation of clients for the 30th Anniversary of the announcement. The impact of the campaign will not show up on Nike's bottom line before its next quarterly report.
"We see how we connect and engage in a relevant and inspiring way for the consumers we are here to serve," he told analysts on Tuesday. "We have seen a record commitment to the brand as part of the campaign, and the strength of our brand (…) is a key dimension that contributes to the continued dynamism we develop in Nike's portfolio."
This is not the first time Nike has been in the news this year.
Former President Trevor Edwards, who was supposed to succeed Parker as CEO, was forced to retire last month due to complaints of sexual harassment and discrimination. Parker apologized for the company's conduct in May and implemented a number of changes to ensure that women and minorities are treated with respect. Several employees who are no longer in the business are suing Nike for pay discrimination.
Meanwhile, Nike is trying to sell more directly to consumers and clients of the courts. In the United States, where sales growth has recently slowed for many sportswear retailers due to a series of bankruptcies by the Sports Authority and other wholesalers, Nike is investing in stores and women's sportswear, competing with Lululemon.
At the beginning of the summer, the company announced a return to growth in North America, thanks to a series of new product launches and better inventory management favoring the "scarcity" of certain items, encouraging buyers not to not have what they want.
The Company also announced that it had repurchased 17.8 million shares for approximately $ 1.4 billion during the quarter, as part of a $ 12 billion four-share buyback program. years.
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