Nike Reports Higher Profits But Growth Slows In China
Mohammad Ali (@ChaudhryMAli88) Published September 26, 2018 | 12:12 PM
Nike reported solid gains in both quarterly profit and revenues Tuesday but shares fell in after-hours trading on slowing growth in China.
New York, (UrduPoint / Pakistan Point News - 26th Sep, 2018 ) :Nike reported solid gains in both quarterly profit and revenues Tuesday but shares fell in after-hours trading on slowing growth in China.
The sports apparel and sneaker giant, which has made headlines in recent weeks over an edgy ad campaign featuring Colin Kaepernick, reported a 15 percent jump in earnings for fiscal first quarter 2019 to $1.1 billion.
Revenues climbed 10 percent to $9.9 billion.
Nike scored revenue gains in all four of its regions, with the strongest increase in China, where year-over-year revenues gained 24 percent to $1.4 billion.
However, that jump was a bit below the 35 percent leap in year-over-year revenues reported in the prior quarter.
Nike's results were also pinched somewhat by higher costs, as it ramps up spending on sports marketing and its direct selling business.
Direct selling to consumers instead of through conventional retailers, along with innovation, is "driving strong momentum and balanced growth across our entire business," said Chief Executive Mark Parker.
Nike's results are the first since the company released an ad campaign this month featuring Kaepernick, the quarterback who has been essentially blacklisted by the National Football League over his civil rights activism.
Some critics took to social media to destroy their Nike garb over Kaepernick, who has been criticized by US President Donald Trump.
But many marketing experts consider the campaign a success and some data has shown an uptick in online sales since the spots were shown. The ad has been seen as a winner with non-white and younger consumers.
Shares of Dow member Nike fell 2.9 percent in after-hours trading to $82.61.
Recent Stories
Tennis: ATP Barcelona Open results - 1st update
Swiatek's perfect 10 in Stuttgart as Vondrousova stuns Sabalenka
Arandu's roads closed due to flooding
Oil tanker catches fire in Islamabad’s Blue Area
Pakistan committed to ensure safety of foreign nationals: FO
Tennis: WTA Stuttgart results - 1st update
Four passengers injured as train hit an empty vehicle
Over- speeding bus crushed to death two bike riders
Turkey's Freedom Flotilla ready to set sail for Gaza
French teen dies from heart failure after knife attack near school
Iranians appear unfazed by Isfahan blasts
UAF celebrates Int'l Chinese Language Day
More Stories From Business
-
Pakistan aims to agree outline of new IMF loan in May - Finance Minister
7 hours ago -
FTO commends FBR's role for prompt resolution of tax payers’ issues
7 hours ago -
BISP embraces E-procurement: launches inaugural tender
9 hours ago -
Business community indebted to Ahsan Zafar for his unprecedented services: Yousuf Rajput
10 hours ago -
China auto sector steps up Europe push with Spain plant
9 hours ago -
Condolence reference held in memory of FBR's officials
11 hours ago
-
Health activists ring alarm bells over 10-stick cigarette pack
11 hours ago -
Karachi receives maiden direct flight of Azerbaijan Airlines from Baku
11 hours ago -
PSX turns bullish, gains 619 points
12 hours ago -
Rupee bounces back; gains 13 paisa against dollar
11 hours ago -
Partners join hands for alternate use of marble, granite slury
11 hours ago -
Tokyo's Nikkei index tumbles 3% in morning trade
14 hours ago