BEAVERTON, Ore.: Nike, Inc has reported fiscal 2019 financial results for its first quarter ended August 31. For the quarter, double-digit revenue growth was driven by the continued success of the Consumer Direct Offense, which fueled growth across all geographies as well as wholesale and Nike Direct, led by digital.
Q1 income statement review
Revenues increased 10% to $9.9 billion, up 9% on a currency-neutral basis, driven by strong revenue growth, gross margin expansion, selling and administrative expense leverage, and a lower average share count, partially offset by a higher effective tax rate.
Revenues for the Nike Brand were $9.4 billion, up 10% on a currency-neutral basis driven by double-digit growth internationally and in Nike Direct, strong momentum in North America, and growth in almost every category led by Sportswear.
Revenues for Converse were $527 million, up 7% on a currency-neutral basis, mainly driven by growth in Europe and Asia.
Net income increased 15% to $1.1 billion driven primarily by strong revenue growth, gross margin expansion and selling and administrative expense leverage while diluted earnings per share increased 18% from the prior year to $0.67 reflecting a 2.5 percent decline in the weighted average diluted common shares outstanding.
“We are delivering stronger global growth and profitability than we anticipated entering this fiscal year,” said Andy Campion, executive vice president and chief financial officer, Nike, Inc. “While foreign exchange volatility has increased, our underlying currency-neutral momentum continues to build as we transform how Nike operates, drives growth and creates value for our shareholders.”
