What Happened
Nike reported first-quarter revenue of $12.7 billion, up 4 percent year-over-year. The total came in ahead of a Street estimate of $12.27 billion, according to data from Benzinga Pro.Earnings per share for Nike were 93 cents in the first quarter, beating a Street estimate of 92 cents per share.
The company reported Nike Direct sales of $5.1 billion in the first quarter, up 16 percent year-over-year. Nike Brand digital sales were up 16 percent year-over-year in the first quarter. Sales of the Converse brand in the first quarter were $643 million, up 2 percent year-over-year.
First-quarter revenue in China was down 16 percent year-over-year. The company cited the strength of the Europe, Middle East & Africa (EMEA), Asia Pacific & Latin America (APLA), and North America regions with double-digit growth.
“Our strong start to FY23 highlights the depth and breadth of Nike’s global portfolio, as we continue to manage through volatility,” Nike CEO John Donahoe said.
What’s Next
Nike ended the quarter with $9.7 billion in inventory, up 44 percent year-over-year. The company cited an elevation in in-transit inventories and the continued supply chain volatility.Nike ended the first quarter with $11.9 billion in cash and cash equivalents.
In the first quarter, Nike returned $1.5 billion to shareholders via $480 million in dividends and $1 billion in share buybacks. A $15-billion share buyback plan was terminated in August 2022 after $9.4 billion in shares were bought back.
A new, four-year $18 billion share buyback plan was announced in June 2022 with $300 million in shares bought back under this plan in the first quarter.
“Our focus continues to be the consumer, as we take action to navigate near-term dynamics while expanding long-term structural benefits through our consumer direct acceleration strategy,” Nike Chief Financial Officer Matthew Friend said.
