WWD Digital Daily

Nike Keeps Momentum Going in Qtr.

● The company’s results last quarter included growth on both top and bottom lines, across all categories and geographie­s.

- BY KELLIE ELL

Nike is still in stride.

The Beaverton, Ore.-based activewear brand reported quarterly earnings Tuesday after the bell, improving on both top and bottom lines.

For the three-month period ending

Aug. 31, the company had total revenues of $10.6 billion, an increase of 7 percent, compared with $9.9 billion the same time last year. Meanwhile, profits rose to $1.36 billion, up from just over $1 billion during 2019’s first quarter.

“Our strong start to [fiscal-year] 2020 highlighte­d the depth and balance of Nike’s complete offense,” Mark Parker, chairman, president and chief executive officer of

Nike Inc., said in his prepared remarks. “Nike’s strong product innovation, combined with our industry-leading digital experience­s, continue to deepen our consumer relationsh­ips around the world.”

He added that the growth was across all geographie­s and categories, including footwear, apparel and the Converse brand, with particular strength in sportswear and the Jordan brand.

The results sent the stock up nearly 6 percent during after-hours trading.

Shares of Nike, which closed down 0.58 percent Tuesday to $87.18 a piece, are up nearly 20 percent year-to-date.

“Our targeted strategic investment­s are accelerati­ng Nike’s digital transforma­tion and extending our competitiv­e advantage,” Andy Campion, executive vice president and chief financial officer of Nike, added. “Even amidst the increasing­ly volatile macroecono­mic and geopolitic­al environmen­t, we expect our unrelentin­g focus on better serving the consumer to continue fueling strong, broad-based growth across our global portfolio.”

Indeed, it seems nothing can hinder the company’s growth at the moment.

In the last year alone, Nike has made headlines with tales from former employees of a toxic workplace; female athletes getting paid less than their male counterpar­ts; the departure of Trevor Edwards, president of Nike’s flagship brand, and criticisms for choosing profession­al football star Colin Kaepernick to lead one of the company’s marketing campaigns. But consumers don’t seem to mind.

A number of factors have contribute­d to the success, such as the continued enthusiasm for ath-leisure goods, the current sneaker obsession, product innovation in apparel and footwear and the company’s increased push toward sustainabi­lity.

Meanwhile, the company continues to open new stores domestical­ly and internatio­nally and has even tapped into the growing rental market with the launch of Nike Adventure Club in August, Nike’s first subscripti­on-box service.

The subscripti­on rental service for kids is expected to help secure the next generation of Nike loyalists.

In addition, the company is expanding its selection of men’s underwear and women’s apparel, particular­ly sports bras.

“With Nike’s unmatched skill and competitiv­e scale, Nike will continue to expand,” Campion said on Tuesday evening’s conference call.

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