Nike reports surprise rise in quarterly revenue

Nike on Tuesday reported a surprise rise in first-quarter revenue and beat expectations for quarterly profit as the sportswear giant rebuilds its presence at wholesalers and invests in fresher products to keep consumers interested.

The company’s first-quarter revenue rose 1% on a reported basis to $11.72 billion. Analysts had expected a fall of 5.1% to $11 billion, according to data compiled by LSEG.

Nike, for years synonymous with sports culture, is trying to rediscover its identity after a string of weak quarters.

It has lost market share to younger rivals such as On and Deckers’ Hoka, which are increasingly seen as more exciting, while demand in major markets – especially China – has been choppy.

CEO Elliott Hill, who took the reins last year, has vowed to refocus the brand around core sports like running, and to producing the kinds of cutting-edge products the company had been known for.

The company also launched its much anticipated women’s athleisure line NikeSkims in partnership with Kim Kardashian‘s brand this month, as it takes on competitors such as Lululemon.

Nike reported first-quarter earnings per share of 49 cents, compared with analysts’ average estimate of 27 cents.