Nike Inc. reported its Q1 earnings results after market close today. Nike Inc. shares are lower -4.71% at $80.80 in after hours trading.
Nike Inc. reported quarterly earnings per share of 67 cent and revenue of $9.95 billion beating earnings estimates of 62 cents a share and revenue of $9.94 billion in fiscal Q1, compared with what analysts surveyed by Thomson Reuters were expecting. Gross Margins increase from 50 basis points to 44.2 percent due to higher average selling prices, favorable full-price sales mix and margin expansion in NIKE Direct, partially offset by higher product costs. Net income increased 15% to 1.1 billion that was driven by strong revenue growth. The share are lower after gross margins missed analyst expectations.
The earnings report comes after a Colin Kaepernick ad that initially sent shares lower and causes a backlash on social media. The stock has since trading at all time highs of $86.04 a share. Shares were climbing the days into this earnings report. Some analyst say the ad was good for the company and help boost sales.
Nike share are up 30.85% year to date as one of the top leaders in the Dow Jones industrial Average. The Dow is up 7.17% year to date.