Nike's focus on selling directly to consumers is paying off in a big way.
The footwear and apparel company on Tuesday posted earnings of $0.86 per share for the three months ending in August, a 28% increase from the same period in the prior year. That growth was driven by a 7% increase in revenue and expanding gross margins in direct to consumer sales.
The strong quarter is a sign that the "Consumer Direct Offense" strategy Nike ( announced in June 2017 is generating returns for the company. The strategy prioritizes increasing the speed of innovation, producing and getting products to consumers faster and selling to and engaging with consumers more directly through digital channels. )
Nike's stock was over $91 in after-hours trading, up from its Tuesday close at $87.17.