Nike Inc (NYSE:NKE) shares climbed nearly 8% in extended trading Thursday after the shoe and apparel retailer topped earnings expectations with its fiscal first-quarter results.
For the quarter ended August 31, adjusted earnings came in at $0.94 per share, compared to $0.93 a year earlier and above expectations of $0.75 per share. Revenue was $12.94 billion, up 2% year-over-year but short of the $12.98 billion Street consensus.
Sales in China improved 5% year-over-year to $1.74 billion, also shy of the $1.84 billion expected by analysts.
The shoe giant’s regional mix was a point of interest given the softer consumer spending in North America in 2023.
North America sales declined 2% to $5.42 billion, Asia Pacific & Latin America sales gained 2% to $1.57 billion and Europe, Middle East & Africa sales jumped 8% to $3.61 billion.
Prior to the results, analysts at Jefferies downgraded Nike and a handful of other retailers to Hold from Buy, arguing that the return of student loan payments would likely be a pain point for consumers.
"We believe US consumers are likely to curtail spending ahead, with apparel & footwear being the most likely areas of pullback," analysts wrote. "With the resumption of student loan repayments, we believe this could be a catalyst that weighs further on already soft sales at some of our specialty apparel coverage."
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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