Nike in its Q1 report on Thursday "posted a 23% jump in quarterly profits and particularly strong sales gains in China," according to Germano & Stynes of the WALL STREET JOURNAL. The company "reported a three-month profit" to begin FY '16 of $1.18B, as sales rose 5% from a year earlier to $8.41B. Excluding the effects of currency fluctuations, Nike said that its global sales rose 14% in the quarter ended Aug. 31. Leading all regions in revenue growth was China, where sales jumped 30% to $886M. China had "been a trouble spot for Nike just two years ago." Through Thursday’s close, the stock had risen 42% over the past 12 months. Nike also reported a 10% rise in inventories in North America, which it attributed "in part to buildup from the West Coast port closures earlier this year" (WALL STREET JOURNAL, 9/25). In Portland, Allan Brettman noted Nike brand sales were $7.9B, up 15% on a currency-neutral basis, "driven by growth in every geography and nearly every key category." Revenues for Converse were $555M, up 3% on a currency-neutral basis, "mainly driven by strong growth" in the U.S., "partially offset by a decline" in the U.K. The company's overall profit increased 23% to $1.2B while diluted earnings per share increased 23%, "reflecting strong revenue growth, gross margin expansion, selling and administrative expense leverage, a lower tax rate and a decrease in the weighted average diluted common shares outstanding" (OREGONLIVE.com, 9/24). At presstime, shares of Nike were trading at $125.16, up 8.99% from the close of business Thursday (THE DAILY).
