Nike stock surges as earnings impress, profit margins set to improve

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Nike bosses struck an upbeat tone in their earnings presentation last night, suggesting improved profitability following a mixed first quarter report.

shares jumped higher in pre-market trading Friday after the sportswear giant posted stronger-than-expected first quarter earnings and indicated profit margins would improve over the coming months.

China revenues were also light of forecasts, at $1.74 billion, while north American revenues were down 1.4% from last year to $5.42 billion. Nike also told investors that margins would expand by around a full percent this quarter thanks to improved markdowns and lower freight costs. The group also held to its full-year forecast for revenues to grow in the mid single-digit range..

“Moving forward, we are laser-focused on scaling these successes with greater consistency and speed as we continue to integrate and streamline our business," he added."This is how we’ll extend our leadership position and drive growth over the long-term."

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