Nike stock dips amid a first-quarter earnings beat
Sports reporter Josh Schafer outlines the circumstances of Nike's first-quarter earnings beat.
Video transcript
DAVE BRIGGS: All right, earnings alert now. Shares of Nike are trading down a percent and a half after the athletic manufacturer posted its first quarter earnings. Josh Schafer has the numbers for us. Josh, presumably not overwhelmingly successful numbers, basically, after hours.
JOSH SCHAFER: No, but they did beat on the top and bottom line here, Dave, so let's get into the numbers. So Q1 earnings for Nike, we got revenue coming in at 12.69 billion. That is a beat, over 12.31 billion of the estimate. And then we have adjusted EPS at $0.93.
That is a beat over $0.92, which was the estimate. Nike direct-to-consumer sales were $5.1 billion. That's up 8% year over year. And then we have inventories, which is always something to watch, especially right now with the supply chain problems. Those are at $9.7 billion. That's up 44% year over year. And that is up more than it was last quarter.
Then you take a look at greater China. The revenue there was $1.66 billion, down 16% year over year. But that is down a little bit less than it was last quarter. So it seems like maybe a little bit of improvement in that area. And then I do want to read a quote for you guys here from president and CEO of Nike, John Donahoe.
He said that our strong start to full year 2023 highlights the depth and breadth of Nike's global portfolio as we continue to manage through volatility. Our competitive advantages, including the strength of our brand, deep consumer connections, and pipeline of innovative product, continue to prove that our strategy is working. But again, here, guys, you've got Nike shares down about 2%. Seems like maybe that greater China area might be weighing on them again, and also those inventories up 44% year over year.