Nike Inc. saw first-quarter income fall as increased costs hurt the bottom line.For the three months ended Aug. 31, the company said net income fell 12 percent to $567 million, or $1.23 a diluted share, from $645 million, or $1.39, a year ago. The company had higher selling, general and administrative expenses for the quarter, as well as a higher tax rate of 27.5 percent versus 24.3 percent last year.Revenues rose 10 percent to $6.67 billion from $6.08 billion. Nike brand revenues rose 16 percent, with growth in all key categories and every geography except Japan, the company said. The firm said gross margin for the quarter slipped to 43.5 percent from 44.3 percent.Calling the first-quarter results a “solid start to the year,” Mark Parker, president and chief executive officer, told Wall Street analysts in a conference call after the markets closed that “SG&A expenses were higher, up 18 percent, as we invested in a remarkable array of product innovations and inspiring moments over the summer of sports.”Parker was referring in part to what he called the “U.S. Open of surfing at Huntington Beach [Calif.], as well as the Summer Olympics in London.”He also said the company is investing for growth in China. “By any objective measure, we’re the undeniable leader for our industry in China. Our brand is the most connected and we deliver the innovative products consumers want. We don’t take our leadership position for granted, and we know we have to earn it every day and we do. I feel very good with our competitive position in China, and I’m confident in the enormous potential for our business in this market,” he said. In May, the company said it was divesting its Cole Haan and Umbro businesses.North American sales contributed to the bulk of the company’s revenues, with the division up 23 percent to $2.71 billion from $2.2 billion. While footwear sales rose 20 percent to $1.73 billion, it was apparel sales that saw the biggest gain at a 26 percent increase to $795 million. Sales in Western Europe fell 5 percent to $1.17 billion from $1.23 billion. Footwear sales fell 2 percent to $714 million, while apparel sales decreased 8 percent to $382 million.Sales in Central and Eastern Europe inched up 2 percent to $342 million. Sales of footwear slipped 1 percent to $178 million, while sales of apparel items rose 9 percent to $134 million. In Greater China, sales rose 8 percent to $572 million, with footwear sales showing gains of 13 percent to $356 million and apparel sales rising 1 percent to $178 million. In Japan, sales fell 6 percent to $183 million. Footwear sales were up 3 percent to $106 million as apparel sales fell 15 percent to $61 million. The emerging markets saw a sales increase of 8 percent to $867 million, with footwear sales up 7 percent to $604 million and apparel sales increasing 16 percent to $211 million. As of the end of the quarter, worldwide futures orders for Nike brand athletic footwear and apparel scheduled for delivery from September through January totaled $8.9 billion. That represents a 6 percent gain compared with orders for the same period a year ago.Shares of Nike fell 3.2 percent to $92.95 in after-hours trading.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim