Nike's Net Profit For Q1 Of The Fiscal Year 2020-2021 Increased By 11%
American sportswear manufacturer Nike for the first quarter of the 2020-2021 fiscal year ended August 31, increased its net profit in annual terms by 11%, to 1.518 billion dollars, according to the company's financial statements.
Diluted earnings per share in the reporting period rose to $0.95 from $0.86 a year earlier. The company's revenue decreased by 1% to $ 10.59 billion.
In Asia-Pacific and Latin America, revenue decreased by 18%, in China-increased by 6%, in Europe, the Middle East, and Africa-increased by 5%, in North America-decreased by 2%.
The American company Nike Inc. is one of the leaders in the world market in the production of sportswear, shoes, and accessories. Founded in 1964, the company has a headquarter in Beaverton, Oregon, USA.
Net income was $1.5 billion, up 11 percent as lower selling and administrative expense more than offset lower gross margin and revenue and diluted earnings per share was $0.95, increasing 10 percent.
Our first quarter revenue performance was impacted by strong NIKE Brand digital growth of 82 percent, offset by lower revenue in our wholesale business and NIKE-owned stores. Nearly all of the NIKE-owned physical doors were open during the quarter across North America, EMEA and
Greater China with approximately 90 percent of doors open in APLA. However, despite a majority
of stores open in the quarter, we continue to experience year-over-year declines in physical retail
traffic across the marketplace due to COVID-19 impacts and safety related measures, offset
partially by higher conversion rates. EMEA returned to growth of 5 percent on a reported basis, led
by triple-digit growth in digital. Greater China revenue increased by 6 percent on a reported basis
and 8 percent on a currency-neutral basis, led by digital and NIKE Factory Stores.