Please ensure Javascript is enabled for purposes of website accessibility

7 Metrics Highlight Nike's First Quarter

By Daniel Sparks - Sep 26, 2018 at 7:31PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here's a look at the retailer's double-digit revenue and earnings growth, soaring digital sales, and more.

Thanks to a controversial marketing campaign, Nike (NKE -0.70%) was already in the spotlight before its quarterly earnings release this week. But the sports footwear and apparel company stirred things up yet again this week when it reported double-digit revenue and earnings-per-share growth for its first quarter of fiscal 2019.

As investors consider the implications of Nike's most recent earnings report, here's an overview of some of its most important metrics from the quarterly update, including soaring digital sales, a buyback of millions of its own shares, and more.

A Nike shoe

Image source: Nike.

1. Revenue increased 10%

Nike's top line increased 10% year over year to $9.95 billion. On a constant currency basis, Nike's revenue was up 9% year over year -- an acceleration compared to constant-currency revenue growth of 8% year over year in the retailer's fiscal fourth quarter. Nike's revenue beat a consensus analyst estimate for revenue of $9.94 billion during the quarter.

Nike CEO Mark Parker said the company saw "strong momentum and balanced growth across our entire business" during the quarter.

2. Earnings per share rose 18%

Nike's EPS climbed 18% year over year to $0.67. Not only did this beat a consensus analyst forecast for EPS of $0.63, but this growth rate also marked an acceleration compared to the 15% increase Nike EPS saw in its fourth quarter of fiscal 2018.

3. Nike's digital sales increased 36%

A 36% year-over-year increase in Nike's digital sales meant digital was the company's "fastest-growing channel in each and every geography," explained Nike CFO Andy Campion in the company's fiscal first-quarter earnings call.

4. Footwear sales rose 10%

The retailer's footwear sales saw double-digit growth on a consolidated basis, rising 10% year over year. This was a significant acceleration from 6% growth for footwear in the company's fiscal fourth quarter.

5. Apparel sales climbed 11%

During the fiscal first quarter, Nike kept up the strong 11% year-over-year growth in apparel sales the retailer posted in its previous quarter. Continued strong momentum was "driven by fleece, tops and bottoms, jackets and pants," Parker said during the company's Q1 earnings call.

6. Nike repurchased 17.8 million shares

Nike spent $1.4 billion to repurchase 17.8 million of its shares. This spending on repurchases was significant, but down from the $1.6 billion Nike spent buying back shares in its fiscal fourth quarter. The lower spend is likely because Nike stock was trading higher during the quarter than it was the previous quarter; shares have surged 30% in the past six months and 57% in the past 12 months.

This leaves just $1.9 billion left in Nike's $12 billion four-year share repurchase authorization. But management already has a new four-year $15 billion share repurchase program in place that will initiate once the current program ends.

7. Management expects full-year revenue growth "in the high single digits"

Nike mostly maintained its revenue outlook, which was revised higher in its previous quarter. The company's guidance calls for fiscal 2019 revenue to rise at a rate that is in the "high single digits" compared to revenue in fiscal 2018. Though management narrowed its guidance range to expect revenue growth "at the lower end of that range." In other words, management likely expects growth between about 7% and 8% instead of growth between approximately 7% and 9%.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NIKE, Inc. Stock Quote
NIKE, Inc.
$106.54 (-0.70%) $0.75

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.