Futures orders at Nike miss expectations

|By:, SA News Editor

Nike reports sales rose 10% in FQ1 on a constant currency basis.

Revenue by brand (ex-currency): Nike +10% to $8.5B, Converse +4% to $574M.

Apparel sales and footwear sales both rose at a double-digit clip on a constant currency comparison, while equipment sales lagged at a 6% rate.

Global futures orders +7% ex-currency (+5% reported): North America +1%, Western Europe +9%, Central/Eastern Europe +9%, Greater China +19%, Japan +11%, Emerging Markets +10%.

Gross margin -50 bps Y/Y to 45.6% as higher selling prices helped to offset a higher mix of off-price sales and F/X swings.

The company ended the quarter with an inventory position up 11% Y/Y.

The effective tax rate was 2.5% for the period, a sharp drop from last year's mark of 18.4% due largely to an IRS issue resolution.

Previously: Nike beats by $0.17, beats on revenue (Sept. 27)

NKE -4.35% after hours to $52.96 with the futures orders guidance missing expectations.

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