Nike Posts Flat Revenue
Global sportswear brand Nike has announced the results for the first quarter of its new 2018 fiscal year. Revenue totaled $9.1 billion in the period, flat against the prior year on both a reported and currency-neutral basis. Revenue for the brand reached $ 8.6 billion, up by 2% on a currency-neutral basis driven by growth in China and other major markets, including
growth in Sportswear segment.
Revenue for Converse brand totaled $483 million, down by 16% on a currency-neutral basis, mainly driven by declines in North America. Net income decreased by 24% totaling $950 million as lower selling and administrative expense was offset by a gross margin decline, a higher effective tax rate and growth in other expense.
According to Mark Parker, Chairman, President and CEO of Nike, “This quarter, we captured near-term opportunities through our new Consumer Direct Offense.” He added, “Looking ahead to the rest of fiscal 2018, we will ignite Nike’s next horizon of global growth through the strength of our brand, the power of our innovative products and the most personal, digitally-connected experiences in our industry.”