Nike Profit Up on Cost Cuts

Nike’s fiscal first-quarter profit has increased slightly, mostly on the back of cost cutting efforts that were undertaken by the sportswear giant earlier this year. However, Nike’s profits have managed to exceed analyst expectations and the company expects cost cutting efforts to dominate the results for the near future.
 
After Nike made the results public, its shares rose 4.3 percent to $62.68 in after-hours trading on Tuesday, marking a dramatic comeback from its three-year-low of $38.24 in March. Nike reported earnings of $513 million, or $1.04 per share, this quarter, which is up from its earnings of $510.5 million, or $1.03 per share, a year earlier.
 
Revenue fell 12 percent to $4.80 billion, which fell short of the average analyst expectation of $4.9 billion, but analysts underestimated Nike’s net income with a prediction of 97 cents per share. Nike has also experienced declining numbers of orders, with its world-wide future orders indicator falling 6 percent to $6.2 billion.

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