Nike Sees its Jordan Brand Hit $1 Billion In Latest Quarter

Athletic apparel and shoe retailer Nike reported financial results this week that revealed an earnings beat and its Jordan brand hitting $1 billion in sales during the quarter.

The company’s quarterly earnings and sales top analysts’ estimates as it cited strength in its Jordan brand. The Jordan brand had its first ever billion-dollar quarter.

For the latest quarter, Nike reported earnings per share of 70 cents while 58 cents was expected according to Refinitiv data. Revenue at $10.33 billion was also ahead of the $10.09 billion expected per Refinitiv.

Despite the beat, shares fell over 2% in after-hours trading but not before they hit an all-time intra-day high earlier in the trading session.

Growth in North America came in slightly weaker than expected which may have alarmed investors. Sales climbed 5.3% during the period, reaching $3.98 billion. Analysts were calling for sales of $4 billion.

Total sales in Greater China, excluding currency impact, grew 23% to $1.85 billion, ahead of the estimates for $1.80 billion.

Nike has said the Greater China region remains one of its greatest opportunities for growth.

“I’ve never been more optimistic about the future of this company,” CEO Mark Parker remarked though. Parker will be stepping down from his position in January and will be replaced by John Donahoe, a current Nike board member and formerly the CEO of eBay.

Nike said digital sales were up 38%, thanks to a boost at the start of the holiday shopping season. It said online sales surged more than 70% in North America on Black Friday.

Parker told analysts on Thursday about Donahoe taking his place that “this has been a thoughtful transition that has been planned for many months.”

Looking ahead, Nike expects full year revenue, on a currency neutral basis, to rise close to a low double-digit rate.
Analysts had been calling for 8% growth.

Shares are up more than 36% this year.

Disclaimer: We have no position in Nike Inc. (NYSE: NKE) and have not been compensated for this article.