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.