By Yasin Ebrahim
Investing.com - Nike (NYSE:NKE) reported Thursday mixed first-quarter results as earnings beat, but revenue fell short of expectations as ongoing supply-chain issues held back sales.
Nike shares lost 4.06% in after-hours trade following the report.
Nike announced earnings per share of $1.16 on revenue of $12.25 billion. Analysts polled by Investing.com anticipated EPS of $1.12 on revenue of $12.46 bilion.
Nike brand digital sales increased 29%, led by North America growth of 43%. Sales in China, a key market for the company, was up 11% to $1.98 billion.
Inventories were flat at $6.7 billion, compared to the prior year period amid elevated in-transit inventories due to "extended lead times from ongoing supply chain disruptions," the company said.
Gross margin increased 170 basis points to 46.5 percent, led by margin expansion in the company's direct business, a higher mix of full-price sales and favorable changes in foreign currency exchange rates.
These tailwinds, however, were partially offset by higher product costs primarily due to increased freight costs, the company said.
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