“Strong consumer demand” continues to drive revenue and earnings growth across Nike Inc.’s brand portfolio, the company said in a release today.
The Beavorton, Ore.-based athletic brand, reported a 22 percent rise in earnings per share and sales growth of 4 percent, or 12 percent on a currency-neutral basis, in its second quarter.
While sales advanced to $7.7 billion, it fell below Wall Street’s estimates for revenue of $7.8 billion. Net income climbed 20 percent with the firm’s worldwide futures orders up 15 percent, or 20 percent growth excluding currency changes.
“Our strong Q2 growth and profitability show that Nike continues to drive real momentum through the category offense — by going deep with consumers by sport and serving them completely,” said Nike President and CEO Mark Parker in a release. “And our powerful global portfolio of businesses, combined with strong financial discipline, continue to drive significant shareholder value. We see tremendous opportunity ahead as we enter an Olympic and European Championships year with a full pipeline of inspiring innovation for athletes everywhere.”
Nike Brand was responsible for the bulk of sales growth in the quarter, at $7.3 billion; meanwhile revenues at Converse declined 5 percent, on a currency neutral basis, to $398 million, as growth in North America was offset by declines in Europe.
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Net Income: Net income for the second quarter, ending Nov. 30, 2015, totaled $785 million, a 20 percent rise from the comparable quarter when earnings were $655 million.
EPS: Earnings per diluted share advanced 22 percent to 90 cents, compared with diluted EPS of 74 cents in the year-ago quarter.
Net Revenue: Revenues increased 4 percent year-over-year to $7.7 billion from $7.4 billion in the comparable period.
Hit, Miss or Beat: Nike beat market watchers estimates for EPS but missed revenue forecasts. Analyst polled by Yahoo Finance had predicted revenue of $7.8 billion and EPS of 86 cents.
