Nike‘s fiscal first quarter earnings have topped analyst expectations once again. The company reports a $10.7 billion revenue, topping the expected $10.44 billion thanks to product innovation and online sales.
According to CNBC, following the news, Nike’s shares rose more than 5.5 percent, a new record high for the brand. Its revenue is up by a total of 7.2 percent, growing from $9.95 billion a year ago to $10.66 billion. The brand’s net income also welcomed massive growth in this year’s first quarter, rising by 25 percent to $1.4 billion, driven by revenue growth and gross margin expansion.
The sportswear company is putting the tremendous growth down to the brand’s investments to sell more sneakers and apparel in its stores and online, which are now paying off. “Our targeted strategic investments are accelerating Nike’s digital transformation and extending our competitive advantage,” explained Andy Campion, Executive Vice President and Chief Financial Officer at Nike.
Nike CEO Mark Parker said that product innovation, like Nike’s new Joyride running shoe, and stronger e-commerce, helped boost results. “Our strong start to FY20 highlighted the depth and balance of NIKE’s complete offense,” he said. “Nike’s strong product innovation, combined with our industry-leading digital experiences, continue to deepen our consumer relationships around the world.”
The company also sites full price sales, the expansion of its women’s business, and brand ambassadors such as tennis champion Serena Williams as other key factors in its fiscal growth. Converse is also up by a significant eight percent, resulting in a $555 million revenue.
Nike recently teased a collaboration with Lebron James.
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