Nike Inc. reported a 10 percent decrease in first-quarter revenues to USD 11.6 billion, on the back of declines across all markets and channels.
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The U.S. sportswear giant said direct revenues plummeted 13 percent to USD 4.7 billion, while wholesale revenues fell 8 percent to USD 6.4 billion.
Nike brand revenues contracted 10 percent to USD 11.1 billion, while sister brand Converse witnessed a 15 percent decrease for the three months ending August 31.
By region, Greater China revenues fell 4 percent to USD 1.7 billion, with hurt by apparel sales, down 10 percent, and footwear sales, contracting 3 percent. However, equipment sales in the region surged 28 percent.
Nike’s Asia Pacific and Latin America region saw revenues fall 7 percent, hindered by an 8 percent decrease in footwear and a 6 percent slide in apparel sales. Equipment sales gained 3 percent during the quarter.
Elsewhere, North America sales fell 11 percent and Europe, the Middle East and Africa sales took a 13 percent dive.
As a result of the lacklustre sales result, net income fell 28 percent to USD 1.1 billion, down 28 percent, and diluted earnings per share were USD 0.70, a decrease of 26 percent.
“Nike’s first quarter results largely met our expectations. A comeback at this scale takes time, but we see early wins — from momentum in key sports to accelerating our pace of newness and innovation,” said Matthew Friend, executive vice president and chief financial officer, Nike Inc, which last month announced the appointment of Elliot Hill to the role of CEO, effective October 14.
“Our teams are energised as Elliott Hill returns to lead Nike’s next stage of growth.