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Nike second quarter revenues increase 9 pecent

By Prachi Singh

21 Dec 2020

Business

Second quarter revenues for Nike, Inc. increased 9 percent to 11.2 billion dollars compared to the prior year, up 7 percent on a currency-neutral basis. The company said in a statement that revenues for the Nike brand were 10.7 billion dollars, an increase of 8 percent to prior year on a currency-neutral basis driven by strong double-digit growth in Nike Direct, as well as growth in sportswear and the Jordan brand, offset by mid single-digit declines in the wholesale business. Revenues for Converse were 476 million, down 4 percent on a currency-neutral basis, as double-digit growth in digital and growth in Asia were more than offset by declines in Europe and North America primarily due to tighter supply and strategic distribution shifts.

“Nike’s strong results during a dynamic environment show the power of staying on the offense,” said John Donahoe, President and CEO, Nike, adding, “Our second quarter revenue performance was impacted by strong Nike brand digital growth of 84 percent, offset by lower revenue in our wholesale business and Nike-owned stores. During the quarter, we experienced temporary door closures in geographies affected by rising Covid-19 cases. We continue to experience year-over-year declines in physical retail traffic in North America, EMEA and APLA due to Covid-19 impacts and safety-related measures, partially offset by higher conversion rates.”

The company added that gross margin decreased 90 basis points to 43.1 percent, net income was 1.3 billion dollars, up 12 percent driven by strong revenue growth and lower selling and administrative expense, slightly offset by lower gross margin, while diluted earnings per share were 78 cents, increasing 11 percent as weighted average common shares outstanding increased slightly.

Picture credit:Nike news