Nike Posts Higher 1Q Profit as Sales Fall
23 September 2020 - 7:04AM
Dow Jones News
By Kimberly Chin
Nike Inc. posted a higher profit in the fiscal first quarter on
lower expenses but sales slipped as its wholesale business and
Nike-owned stores were affected by the coronavirus pandemic.
The Beaverton, Ore.-based company said profit was $1.52 billion,
or 95 cents a share, for the quarter ended Aug. 31, up from $1.37
billion, or 86 cents a share, a year earlier. Analysts were
expecting earnings of 42 cents a share, according to a FactSet
poll.
Sales were $10.59 billion, a roughly 1% decrease from a year
earlier. Analysts were looking for $9.13 billion. Nike's direct
sales rose 12% to $3.7 billion. Digital sales surged 82%.
"Despite a majority of stores open in the quarter, we continue
to experience year-over-year declines in physical retail traffic
across the marketplace due to COVID-19 impacts and safety related
measures, offset partially by higher conversion rates," Nike
said.
The company reduced selling and administrative expenses, demand
creation expenses and operating overhead expenses compared with
last year.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
September 22, 2020 16:49 ET (20:49 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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