Nike posts 11 percent earnings growth in Q2

Revenues in the second quarter at Nike increased 6 percent to 8.2 billion dollars, up 8 percent on a currency neutral basis. The company said global consumer demand drove revenue growth across the Nike Brand portfolio. Nike said, diluted earnings per share were up 11 percent and grew faster than revenue, primarily due to selling and administrative expense leverage and a lower average share count.

“Nike’s ability to attack the opportunities that consistently drive growth over the near and long term is what sets us apart,” said Mark Parker, Chairman, President and CEO, Nike in a statement, adding, “With industry-defining innovation platforms, highly anticipated signature basketball styles and more personalized retail experiences on the horizon, we are well-positioned to carry our momentum into the back half of the fiscal year and beyond.”

Nike brand revenues rise 8 percent in Q2

Revenues for the Nike Brand were 7.7 billion dollars, up 8 percent on a constant currency basis, driven by double-digit currency neutral growth in Western Europe, Greater China and the Emerging Markets as well as the sportswear and running categories. Revenues for Converse were 416 million dollars, up 5 percent on a currency neutral basis, driven by strong growth in North America.

The company said gross margin contracted 140 basis points to 44.2 percent, as higher average selling prices were more than offset by higher product costs, unfavourable changes in foreign exchange rates and the impact of higher off-price sales.

Net income increased 7 percent to 842 million dollars, while diluted earnings per share increased 11 percent to 0.50 dollars, reflecting revenue growth, selling and administrative expense leverage and a three percent decline in the weighted average diluted common shares outstanding, partially offset by lower gross margin.

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