Nike on Tuesday reported its first quarterly sales in increase in six quarters as the company’s turnaround effort showed progress.
The sportswear company said sales in the three-month period that ended Aug. 31 increased 1% to $11.7 billion, topping Wall Street’s expectation of a 5% sales decrease.
Tuesday’s earnings report comes on the heels of a reorganization around sports and amid continued bullish comments from Nike executives that the company is getting back on track.
In recent years, Nike flooded the market with retro sneakers and focused on sales in its stores and on its website, moves that ultimately faltered, sending sales downward for five consecutive quarters, a rare, prolonged skid for Oregon’s biggest company.
Since he started work nearly a year ago, Nike CEO Elliott Hill has worked to unwind those two strategies. And Tuesday’s earnings report shows improvement in core parts of Nike’s business.
In a press release, Nike touted gains in the critical North America sales territory, its wholesale business and running, Nike’s legacy category, but one where it gave up market share in recent years.
But Hill also cautioned that the turnaround is ongoing.
“While we’re getting wins under our belt, we still have work ahead to get all sports, geographies, and channels on a similar path as we manage a dynamic operating environment,” he said in a press release.
Nike will host a call with stock analysts at 2 p.m. This story will be updated after the call.