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
CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%
Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss
Key metrics from Nike’s (NKE) Q2 2025 earnings results
NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net
FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips
Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,
Comments
Comments are closed.