- Prachi Singh |
REPORT Nike in its fiscal 2015 second quarter results ended November 30, 2014 said that the company experienced strong consumer demand driving revenue growth across the portfolio. Diluted earnings per share grew faster than revenue, up 25 percent, primarily due to gross margin expansion and a lower average share count. Revenues for Nike increased 15 percent to 7.4 billion dollars, up 18 percent on a currency neutral basis.
“Our strong second quarter results once again demonstrate Nike is a growth company,” said Mark Parker, President and CEO of Nike, adding “The power of our portfolio continues to unlock growth, as we keep a laser focus on our biggest opportunities. The breadth and depth of that portfolio has helped us consistently deliver strong results – quarter after quarter, year after year.”
Revenues for the Nike Brand were 7 billion dollars, up 17 percent on a currency neutral basis, with growth in every product type, geography and key category, except Golf. Revenues for Converse were 434 million dollars, up 24 percent on a currency neutral basis, driven by continuing growth in existing direct distribution markets as well as market conversions in Europe and Asia.
Gross margin increased 120 basis points to 45.1 percent. The increase was primarily attributable to a shift in mix to higher margin products, continued growth in the higher-margin Direct-to-Consumer (DTC) business and a modest benefit from foreign exchange. These positive factors were partially offset by higher product input costs. Net income increased 23 percent to 655 million dollars.