Nike reports Q1 profit of $1.45 billion, beats estimates

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Also Read: US agency files lawsuit against Tesla over alleged harassment of Black factory workers The sportswear maker also forecast a 100 basis point increase in second-quarter gross margins, following six consecutive quarters of declines, on the back of fewer planned markdowns and lower freight costs. The company maintained its annual forecasts and said it expected second-quarter revenue to be up slightly. Analysts had expected a 2.1% rise to $13.59 billion, according to LSEG data.

Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! “We will build on the consumer momentum around running and modern comfort," Chief Financial Officer Matthew Friend said, adding the company would lean on its sneaker series such as Air Max 1, Infinity and V2K to cash in on the growing demand for running shoes. The company will also refresh its portfolio of basketball shoes across the Nike and Jordan brands in terms of style, as well as focus on its new Kobe brand, Friend added. Also Read: Shell weighs sale of Sprng assets stake Nike’s North America revenue fell 2% and was just below expectations.

Greater China sales cooled, with growth of 4.8% falling short of estimates. Nike CEO John Donahoe said the company would turn its attention to “prioritizing the everyday runner" and connecting with shoppers in more channels, including specialty running stores. Nike share price jumped as much as 9.6% in after-market trading.