Nike Beats Estimates by 81% While Under Armour Swings to Loss

"Nike reported $0.49 per share in its August quarter against expectations of $0.27, delivering an 81% earnings surprise on revenue of $11.72 billion. The company has exceeded estimates in seven of its last eight quarters, averaging roughly 35% surprises. However, net income dropped to $727 million from over $1 billion a year earlier, and operating margin compressed to 7.9%. Gross margin held at 42.2%, but operating expenses ate into profitability as the company invested in digital infrastructure and premium product lines."

"Under Armour reported a loss of $0.04 per share in its September quarter, missing the $0.27 profit estimate by 116%. Revenue fell 7.1% to $1.30 billion, with footwear down 16% and North America down 8%. Gross margin dropped 250 basis points to 47.3% as supply chain costs and promotional activity squeezed profitability. Operating income collapsed 90% to $17 million. A year earlier, the same quarter delivered $170 million in net income."

Nike reported $0.49 per share on $11.72 billion in revenue, beating estimates by 81% while net income fell to $727 million and operating margin compressed to 7.9%. Gross margin remained 42.2% as the company invested in digital infrastructure and premium product lines, and it has outperformed estimates in seven of the last eight quarters. Under Armour posted a $0.04 loss per share on $1.30 billion in revenue, down 7.1%, with footwear down 16% and North America down 8%. Gross margin fell 250 basis points to 47.3%, operating income collapsed 90%, and full-year revenue guidance was lowered.

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