Nike earnings: $1.09 per share, vs. expected EPS of 88 cents

Nike up on strong Q1

Nike shares spiked after the sports apparel maker easily blew past expectations.

The company reported earnings of $1.09 a share versus estimates of 88 cents a share, on revenue of $7.98 billion, exceeding expectations of $7.84 billion.

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"Fiscal year 2015 is off to a strong start. Our connection to consumers and ability to innovate, combined with our powerful global portfolio, is a complete offense," Mark Parker, President and CEO of Nike, said in a statement. "Nike has never been better positioned to realize our tremendous growth potential."

The company had reported earnings of 86 cents a share on revenue of $6.97 billion in the year-ago period.

Revenue increased 15 percent, with growth in nearly every product category, the company said. A shift to higher margin products contributed to a significant increase in gross margin to nearly 47 percent. Net income rose 23 percent.

Nike signage outside a store in San Francisco.
David Paul Morris | Getty Images

Nike announced earlier this year that it would discontinue its FuelBand wearable device, and CEO Mark Parker told CNBC in April that the company would be focusing more on software for the future. That bet comes as more companies step into the wearable technology ring, including the recently announced smartwatch from Apple.

The sports apparel firm made headlines recently by cutting ties with National Football League player Adrian Peterson. The Minnesota Vikings star has been accused of child abuse as the league faces criticism for its handling of domestic violence issues.