Sportswear giant NIKE Inc. (NYSE: NKE) reported higher revenues and earnings for the second quarter of 2020, which also topped the Street view. However, the company’s stock dropped on Thursday, during the extended session, as gross margin growth was light.
Net income increased to $1.1 billion or $0.70 per share in the three-month period from $847 million or $0.52 per share last year. Analysts had forecast a lower number. Gross margin increased 20 basis points to 44%, aided by higher average selling prices and margin expansion in NIKE Direct and Converse, which was partially offset higher product-costs due to incremental tariffs.
Revenue up 12%
The sneaker giant said its revenue increased 10% to $10.3 billion in the second quarter from $9.4 billion a year earlier, reflecting strong performance by the key business segments across all regions. The top-line also exceeded the forecast.
Revenues for the NIKE Brand advanced 12% annually, while Converse revenue moved up 15%, supported by double-digit growth in Asia and Europe and higher digital sales globally.
Share Buyback
During the quarter, the company repurchased 10.1 million shares for around $922 million As of November 2019, a total of 33.6 million shares were repurchased.
“NIKE delivered another strong quarter of accelerating, high-quality growth, driven by strategic and targeted investment in our digital transformation. As we deliver a relentless flow of innovation and scale NIKE’s digital advantage, we are positioned for even greater competitive separation and long-term shareholder value creation, “said CFO Andy Campion.
Peer Performance
Last month, Under Armour (UAA) reported stronger-than-expected earnings for its third quarter, despite a decline in revenues. Net earnings rose to $0.23 per share from $0.17 per share last year.
Shares of Nike gained 33% so far this year and 8% in the past one month. The majority of analysts have assigned buy rating on the stock, with an average price target of $104.94.
Most Popular
AAPL Earnings: Apple’s Q2 sales and profit beat estimates; iPhone sales down 10%
Apple Inc. (NASDAQ: AAPL) on Thursday reported better-than-expected profit and revenue for the second quarter of 2024. There was a 10% decrease in iPhone sales. The gadget giant reported revenues
Shopify (SHOP) is all set to report Q1 2024 results. Here’s what to expect
Over the years, Shopify Inc. (NYSE: SHOP) has steadily expanded its footprint in the online retail market through constant innovation, like the recent launch of a mobile POS device for
eBay (EBAY): A look at how the ecommerce company fared in Q1 2024
Shares of eBay Inc. (NASDAQ: EBAY) were down over 2% on Thursday. The company reported its earnings results for the first quarter of 2024 a day ago, with revenue and
Comments
Comments are closed.