Wall Street: Nike soars almost 8% after reporting better-than-expected profits

Nike is shot near the 8% this friday in Wall Street after reporting better-than-expected profits in the most recent quarter of $1.45 billion Dollars.

The actions of Nike They reached almost 8% and then settle into a 7.6%. The strength in other latitudes helped it compensate for some unforeseen events in North America.

Nike earnings up 1% to 94 cents per share after reporting accelerated declines in the last two quarters. Revenue growth slowed for the third consecutive quarter, increasing by 2% to $12,940 million.

Still, the slight increase in earnings per share far exceeded expectations. Wall Street. The analysts surveyed by FactSet They expected earnings to fall 18%, to 76 cents per share. However, sales did not reach the expected 2.5%, reaching US$13 billion.

Nike: what happened and what is coming

Nike’s revenue increased 3%, to $12.4 billion, driven by growth in China, Europe, Middle East and Africa markets (EMEA). Total sales in China increased 12%, marking the second consecutive quarter of double-digit growth.

The results were offset due to a decline in North America. Likewise, Nike Direct sales, which encompass digital and online offers, They increased 6%, to US$5.4 billion.

Demand creation expenses increased by 13%until US$1.1 billion, due to higher spending on advertising and marketing. Nike inventories fell 10% compared to last year, up to US$8.7 billionwhich the company attributed to a decline in units.

For what’s coming, Nike expects revenue growth to increase slightly compared to last year. Executives expect gross margins to increase about 100 basis points from a year ago due to strategic pricing, improved markdowns and lower ocean freight rates.

However, the company continues to see a negative impact of currency headwinds. Likewise, Nike also plans to continue realigning its business with Foot Locker (FL) and expects short-term sales declines while investing in long-term consumer-focused concepts.