NIKE Inc (NYSE:NKE) topped analyst estimates in its fiscal first-quarter results, but its shares tumbled in after-hours trading.
The sportswear giant reported earnings of $0.67 per share on revenue of $9.94 billion compared with $0.57 per share on revenue of $9.07 billion in the previous year’s first quarter.
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The Oregon-based company beat Wall Street estimates of $0.62 EPS on revenue of $9.93 billion.
The company’s gross margin increased to 44.2% as a result of higher average selling prices, but still fell short of analyst expectations of 44.3%.
NIKE shares fell around 2% to $83.28 in Tuesday after-hours trading.
“We are delivering stronger global growth and profitability than we anticipated entering this fiscal year,” said CFO Andy Campion in the company’s press release.
“While foreign exchange volatility has increased, our underlying currency-neutral momentum continues to build as we transform how NIKE operates, drives growth and creates value for our shareholders,” he added.
In North America, footwear revenue increased by 5% while the apparel division was up 8% compared with the previous first quarter.
Nike made headlines earlier this month with its ad featuring former NFL quarterback Colin Kaepernick, but the ad debuted after the end of the quarter. The former NFL athlete was the first to take a knee during the national anthem in protest of police brutality.
While some were outraged by the ad and threatened boycotts, the message resonated with others. The company’s market value increased by $6 billion since the ad campaign launched, as per a Fortune report.