BEAVERTON, Ore. — Nike Inc. says its fiscal first-quarter profit fell 24 percent because of a higher tax rate and unfavorable foreign exchange rates, but the results still beat Wall Street expectations.
The Beaverton, Oregon-based maker of athletic shoes and apparel said it earned $950 million, or 57 cents per share, in the quarter. That’s down from $1.25 billion, or 73 cents per share, a year ago. Analysts surveyed by Zacks Investment Research expected earnings of 48 cents per share on $9.06 billion revenue.
Nike said its revenue was relatively flat at $9.07 billion.
The company said its tax rate in the quarter jumped to 11.4 percent from last year’s 2.5 percent because of the way stock-based compensation is taxed.
Nike shares have climbed almost 6 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 12 percent. In the final minutes of trading on Tuesday, shares hit $53.70, a decline of slightly more than 1 percent in the last 12 months. They dropped about 1.8 percent in extended trading.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on NKE at https://www.zacks.com/ap/NKE
Keywords: Nike, Earnings Report