Nike, Inc. (NYSE: NKE) reported its first quarter financial results for fiscal 2020 and topped analysts’ expectations. Nike shares edged higher by 5% during Wednesday’s pre-market trading hours.
For the first quarter, Nike reported earnings of USD 0.86 per share on revenue of USD 10.66 Billion. Refinitiv analysts projected earnings of USD 0.70 per share on revenue of USD 10.44 Billion.
Nike witnessed its revenue increased by 7% year-over-year, primarily driven by stronger revenues across its geographic regions. Predominantly, stronger sales in Greater China paved the way for Nike’s better-than-expected quarter.
Greater China sales surged by 27% at the end of the quarter. Meanwhile, North American sales rose by 4%, while Europe, Middle East and Africa sales gained 12%. Asia Pacific and Latin America sales increased by 13%.
Despite the ongoing trade wars between the U.S. and China, Nike is increasing its presence in China. The Company opened its first House of Innovation store in Shanghai last year to offer unique and personalized products for customers.
Revenues for the Nike Brand were USD 10.1 Billion, representing a 10% increase year-over-year. The segment was primarily driven by growth across NIKE Direct and wholesale, with key categories including Sportswear and the Jordan Brand as well as continued growth across Nike’s footwear and apparel segments.
Revenues for Converse were USD 555 Million at the end of the quarter, increasing by 8% year-over-year. The segment was driven by double-digit growth in Asia and through global digital sales, however, it was partially offset by declines in the U.S.
Chief Executive Officer Mark Parker highlighted in the earnings call with analysts that product innovation as well as stronger e-commerce drove a stronger quarter. Parker noted that online sales grew by 42% during the quarter.
For the remainder of the fiscal year, analysts are expecting Nike to report earnings in the range between USD 2.73 to USD 3.00 per share on revenue of USD 42.09 Billion.
Leading into Wednesday’s opening bell, Nike shares are now up 17.59% this year.