Nike reported lower-than-expected earnings for its fiscal fourth quarter, but beat estimates on sales.
The footwear/sportswear behemoth’s adjusted earnings for the three months ending in May came in at 62 cents per share, falling short of the Street estimates of 66 cents. The figure is also -10.14% lower from the year-ago quarter.
The company’s revenue of $10.18 billion, however, beat analysts’ estimates. It registered a solid +4% year-over-year growth as well. Sales from the Nike brand, which excludes Converse merchandise, climbed +10% from the same quarter last year to $9.7 billion.
The company said that its profit margins were squeezed during the quarter in part due to investments needed to sell more directly to consumers and less through wholesalers.
In fiscal 2019, Nike’s revenues from its direct-to-consumer division touched $11.8 billion, thanks in large part to a +35% surge in online sales and a +6% jump in same-store sales , according to the company.