Nike Q1 Revenue Rises 15%, But Overhead Expenses Also Up

Nike yesterday reported Q1 revenues of $8B, a 15% increase “over the same period last year.” Profits in Q1 rose 23% to $962M from $779M during the same period last year. Revenues for Nike’s Converse brand were up 16% to $575M, while revenues for the Nike brand itself – “the bulk of overall revenues” – were up 15% to $7.4B. Operating overhead expense increased 19% to $1.6B “on higher costs from expanding the company’s direct-to-consumer business (web, Nike-only retail) and investments in operational infrastructure” (OREGONLIVE.com, 9/25).