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Nike delivers strong revenue and earnings growth in Q2

By Prachi Singh

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Business

Nike, Inc. has announced that its revenues for its second quarter ended November 30, 2019 increased to 10.3 billion dollars, up 10 percent on a reported basis and up 13 percent on a currency-neutral basis, driven by strong growth across all geographies. The company said, diluted earnings per share for the quarter were 70 cents, an increase of 35 percent driven primarily by strong revenue growth, gross margin expansion, selling and administrative expense leverage, a lower tax rate and a lower average share count.

“In Q2, Nike has proven again that innovation is our greatest competitive edge – turning athlete insights into breakthrough product and digital services, as we offer more choice to more consumers at an accelerated pace,” said Mark Parker, Chairman, President and CEO, Nike in a statement.

Nike brand revenues rise 12 percent in the second quarter

Revenues for the Nike brand were 9.8 billion dollars, up 12 percent on a currency-neutral basis driven by growth across wholesale and Nike Direct; key categories including sportswear, the Jordan Brand and running, and continued growth across footwear and apparel. Revenues for Converse were 480 million dollars, up 15 percent on a currency-neutral basis, mainly driven by double-digit growth in Asia and Europe, as well as through digital globally.

Gross margin increased 20 basis points to 44 percent and net income increased 32 percent to 1.1 billion dollars driven primarily by strong revenue growth, gross margin expansion, selling and administrative expense leverage and a lower tax rate.

“Nike delivered another strong quarter of accelerating, high-quality growth, driven by strategic and targeted investment in our digital transformation,” added Andy Campion, Executive Vice President and Chief Financial Officer of Nike.

For the six months period, the company’s revenues rose 9 percent to 21 billion dollars, while earnings per share increased 31 percent to 1.51 dollars. Net income increased 28 percent to 2,484 million dollars.

Picture:Nike media resources

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