Nike's Q1 earnings beat expectations despite missing revenue projections

Nike reported lower-than-expected revenue for the first time in two years, but beat earnings and gross margin estimates, causing its stock to rise in after-hours trading. The company's net income for the fiscal first quarter was $1.45 billion, or 94 cents per share, compared to $1.47 billion, or 93 cents per share, a year earlier. Sales rose to $12.94 billion, just shy of the expected $12.98 billion. Nike's performance in China fell short of expectations, with sales growing by 5% compared to the year-ago period. Sales in North America also declined by 2%. The company maintained its full-year guidance and expressed confidence in the Chinese market. Nike's direct channel, including owned stores and digital sales, led its growth during the quarter. The company is focused on a direct-to-consumer model while restoring relationships with wholesale partners.