Nike reported quarterly earnings and revenue on Thursday that beat analysts’ expectations with the help of strong global sales and improvements to its digital business.
Shares of the company rose 7 percent.
Nike said revenue grew in nearly every category, with footwear and apparel seeing growth in the double digits globally. Digital sales led growth across both the Nike and Converse brands.
“As we continue to invest in digital transformation, we are driving consumer-centric disruption in our industry and unlocking new opportunities for growth,” CFO Andy Campion said in a statement.
Up only 8 percent so far this year, Nike’s stock is under-performing relative to rivals Under Armour and Lululemon, but its $107.2 billion market value dwarfs those of its competitors.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 52 cents vs. 46 cents expected
- Revenue: $9.37 billion vs. $9.18 billion expected
Nike said fiscal second-quarter net income rose 10 percent to $847 million, or 52 cents per share, from $767 million, or 46 cents per share, a year earlier. The results topped estimates of 46 cents per share from analysts surveyed by Refinitiv.
Nike said its profits were helped by higher average prices, which boosted its gross margins.
Net sales increased by 10 percent to $9.37 billion, topping expectations of $9.18 billion. Adjusting for currency fluctuations, revenue increased by 14 percent to $8.9 billion.
The company made no mention of its ad campaign starring Colin Kaepernick in its earning release, but it appears that the controversy did not negatively affect sales. The former NFL player made headlines as a quarterback for the San Francisco 49ers for protesting police brutality by kneeling during the national anthem. Nike unveiled the ad on Labor Day to commemorate the 30th anniversary of its “Just Do It” campaign, and was immediately met with criticism. Some customers went on social media and burned their Nike shoes, vowing not to shop the brand again.
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