Nike Inc. (NYSE: NKE) shares climbed more than 3% in intra-day trading Wednesday after the company reported quarterly earnings that exceeded Wall Street expectations, supported by stronger wholesale sales.
The sportswear giant posted first-quarter earnings of $0.49 per share, well above analyst estimates of $0.27. Revenue increased 1% year-over-year to $11.7 billion, roughly in line with market forecasts.
Wholesale revenue advanced 7% to $6.8 billion as retailers replenished inventory ahead of major sports launches. However, Nike Direct sales, which include its retail stores and digital channels, fell 4% amid weaker online demand.
Sales from the core Nike brand rose 2%, led by North America, though Greater China declined. Converse revenue dropped 27%. Gross margin contracted 320 basis points to 42.2% due to higher tariffs and discounting, while net income fell 31% to $700 million.
