Nike 2Q Beats the Street, Shares Edge Lower

By RetailFOXBusiness

Nike Inc. (NYSE:NKE) posted second-quarter earnings that topped the Street's estimates, but shares slid nearly 5% in after-hours trading.

The sports-apparel behemoth said that worldwide future orders rose 11%, up slightly from the fiscal first-quarter’s 10% increase, to $7.7 billion, which is a positive indicator for future growth.In the second quarter, the company reported a profit of $457 million or 94 cents a share, up from year-ago earnings of $375 million or 76 cents a share.

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Revenue rose 10% during the quarter, to $4.84 billion, compared with last year’s second-quarter sales of $4.41 billion. Gross margin widened to 45.3%, up from 44.5% last year.

The results topped expectations, as analysts polled by Thomson Reuters had predicted earnings of 88 cents a share on revenue of $4.81 billion.

The company touted the fact that nearly each brand, category and geography demonstrated growth during the quarter. Revenue from North America rose 14%, while emerging markets saw revenue improve by 24%. Revenue from Japan and Western Europe sank 14% and 7%, respectively.

"We continue to outperform the market thanks to our innovative product, compelling brands and strong marketplace management. That's good for athletes and consumers, good for our industry, and it's good for our shareholders,” said Mark Parker, President and CEO of NIKE Inc, in a release. “Going forward, we're in the enviable position of having far more opportunities than challenges."

Shares of Nike rose $2.03 or 2.25% in Tuesday’s session, closing the day at $92.30. The stock was down $4.98, or 5.15% in after-hours trading.

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