Nike’s (NKE) stock is up 8% after the athletic shoe and apparel maker issued financial results that beat Wall Street expectations.
The company reported that its revenue rose 2% for its fiscal first quarter from a year earlier to $12.9 billion U.S. That was slightly less that the $13 billion U.S. expected by analysts who track the company’s progress.
However, Nike’s earnings per share (EPS) came in much stronger than expected at $0.94, which beat consensus estimates of $0.76.
Nike also reaffirmed both its fiscal second quarter and full-year guidance.
For the full fiscal year, Nike continues to expect revenue to grow in the mid-single digits. Analysts are forecasting 4% revenue growth for the entire year.
The sneaker maker also announced that its inventories declined 10% in the latest quarter from a year earlier. Nike had been stuck with high inventory levels since the onset of the Covid-19 pandemic in 2020.
Also encouraging were sales in China during the quarter, which rose by 5% from a year earlier. In North America, sales beat expectations but fell 2%.
Prior to today’s move higher, Nike’s stock had declined 25% this year to trade at $89.63 U.S. per share.