3 Retail Takeaways From Nike's Strong Quarter
Nike (NYSE: NKE) just did it again. Shares of the sportswear superstar climbed to an all-time high this week after the company breezed past analyst expectations in its fiscal first-quarter report. Revenue was up 7% in the quarter, or 10% on a constant currency basis, while bottom-line results surged with earnings jumping 28% year over year to $0.86 per share. Gross margin increased 150 basis points to 45.7% due to higher-average selling prices as the Nike Direct channel, which includes e-commerce and Nike-owned stores, performed particularly well.
The Swoosh also lifted its margin guidance, calling for gross margin to rise 50 to 75 basis points for the fiscal year. Not surprisingly, Nike investors were celebrating, pushing the stock up 4.2% on Wednesday, the first session after the report came out, and it gained again on Thursday. However, as the world's most valuable apparel company, Nike's results carry implications for the retail industry at large. Let's look at a few takeaways for retail investors from the company's big quarter.
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Source Fool.com
