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.
In March, Nike surpassed more than a billion dollars in profits during a single quarter.
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. And the Nike app, which is available in 21 countries around the globe, will be available in China this holiday season.
“With Nike’s unmatched skill and competitive scale, Nike will continue to expand,” Campion said on Tuesday evening’s conference call.