Nike's Stomps Expectations with a Star Quarter – Motley's Fool

[ad_1]

Nike Results: Gross figures

DATA SOURCE: NIKE , INC. * FOR THE QUARTER ENDING MAY 31, 2018.

In 1965, Nike's business volume was well above last quarter's forecast, which projected a single-digit percentage growth.

NIKE brand sales rose 14% – 9% at constant exchange rates – NIKE international sales rose in the double-digit range, including 10% growth in the EMEA zone (Europe, Middle East, Africa and Africa), to 2.466 billion dollars, an increase of 35% in Greater China, to 1.468 billion dollars, and an increase of 12% in l & # 39; Asia Pacific. Nike's North American sales also climbed 3%, reaching $ 3.875 billion, above forecasts for roughly stable sales compared to the same period of the year last. Note that sales in North America declined by 14% at constant exchange rates, with growth in Asia only partially offsetting declines in other regions. As in the previous quarter, the decline was primarily due to Nike's decision to rebalance the wholesale distribution in North America and the EMEA region – but sales of Converse Direct grew more than 60 basis points. Nike bought back 23.1 million shares for $ 1.6 billion during the quarter, leaving about $ 3.3 billion remaining in its first four months, to 44.7 percent, thanks to price hikes. selling higher means. A $ 12 billion buyback program was approved in November 2015.

Nike also today announced a new 1945 buyback program of four years duration, from 39 worth $ 15 billion.

What management had to say

"Our new innovation is winning with consumers, boosting our international markets and returning to growth in North America," said Mark Parker, CEO of Nike. "Fueled by a complete digital transformation of our end-to-end business, this year has laid the foundation for Nike's next wave of growth and long-term sustainable profitability."

Future Prospects

At the Next Conference Call The Chief Financial Officer, Andy Campion, added that Nike is now expecting a growth in its business turnover. fiscal year 2019 at a high level, slightly up on previous expectations of moderate to high growth. Nike also expects the gross margin for the entire year to increase by about 50 basis points "or slightly more" (by 43.8% in 2018).

Meanwhile, Nike expects its revenue growth in the current fiscal first quarter to climb to the same single-digit level, with gross margin growing at a slightly slower pace. its forecasts for the first half. 19659003] All things considered – the continued expansion of Nike's margins, its sustained international strength, its massive new buyout program and its rapid return to growth in North America – a quarter as strong as Nike's investors would have could ask for it. And it's hard to blame the market for pushing the title to record highs in response.