Oct 1 (Reuters) – Nike missed analysts’ expectations for quarterly revenue on Thursday as it continues to grapple with weak demand in China and heightened competition, keeping investors on edge about the pace of CEO Elliott Hill’s turnaround.
Nike, like many US retailers, is grappling with cautious consumer spending in the face of stubborn inflation. But its woes have largely stemmed from strategic missteps and a failure to release enough new, compelling products, analysts have said, leading to an uptick in promotions and discounts. Its shares fell 4% in extended trading.
The sportswear giant posted sales of $11.2 billion for the first quarter, compared with analysts’ average estimate of $11.32 billion, according to data compiled by LSEG.
Its gross margin, however, rose 60 basis points to 42.8% in the quarter ended August 31, helped by lower warehousing and logistics costs.
(Reporting by Angela Christy in Bengaluru and Danielle Kaye in New York; Editing by Shilpi Majumdar)
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