On Thursday, athletics clothier Nike reported quarterly earnings and sales have beat analyst expectations on the heels of renewed customer interest from Nike’s limited-edition Jordan sneakers and other athletic apparel available on its website.
The company said that the long popular Jordan brand saw its first ever billion-dollar quarter. Nike says investment in innovation has helped to motivate new interest in the label, which has long been focused on basketball branding. In particular, the brand has seen more popularity among women in the US and among international markets.
Nike CFO Andy Campion comments, “Nike delivered another strong quarter of accelerating, high-quality growth, driven by strategic and targeted investment in our digital transformation. As we deliver a relentless flow of innovation and scale Nike’s digital advantage, we are positioned for even greater competitive separation and long-term shareholder value creation.”
At the same time, the athletic wear retailer also notes that shares fell more than 2 percent in after hours-trading, dipping only after an all-time intraday high a few hours before.
With all that said, CEO Mark Parker, who will be stepping down soon, comments that this has been a very good quarter. In fact, he says, optimism for the future of the company is quite high, even as he transitions out.
Parker goes on to say, “This has been a very thoughtful transition that has been planned for many months. I strongly believe the best time to make changes is from a position of strength. Our brand and our business are as strong as they’ve ever been. We’re focused, we’re competitive, we’re creating a future of our own design.”
When all is said and done, Nike reported that revenue is up about 10 percent, to $10.33 billion, nearly $1 billion more than a year ago; beating analyst expectations of $10.09 billion. Also, earnings per share for the last quarter came to 70 cents, which is notably better than the 58 cents analysts had expected, likely resulting from a whopping 38 percent boost in digital sales at the start of the holiday season.