Categories LATEST, Retail, U.S. Markets News

Nike’s stock stays in red territory despite strong quarter

NIKE Inc.’s (NYSE: NKE) shares were down 1.2% in afternoon hours on Friday despite the company posting strong results for the second quarter of 2020. Nike beat revenue and earnings expectations for the quarter but gross margins fell below estimates causing the stock to drop.

Revenues grew 10% while profits rose over 30% in the quarter compared to the prior-year period. Revenues increased across all segments and regions. The company sees major opportunity in apparel. During the quarter, revenue in women’s sportswear apparel grew double-digits. The Jordan brand is performing well both in North America and internationally.

On its quarterly conference call, the company said digital commerce revenue grew 38% in the second quarter, fueled by a strong start to the holiday season. Digital sales increased more than 70% in North America on Black Friday while buying members grew 45% from last year.

In China, Nike generated around $0.5 billion in revenue on Single’s Day, reflecting the strength in its brand and product portfolio. The company stated that China is the world’s most compelling digital marketplace in many ways. While the digital share of the business in Greater China is Nike’s largest compared to other geographies, the company still sees massive potential in the region.

Nike continues to focus on investing in areas which have the greatest potential to drive growth and the company is looking to build capabilities which will truly differentiate it. Following the results announcement, a number of analyst firms have raised price targets on the stock.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Aurora Cannabis (ACB) Earnings: 3Q21 Key Numbers

Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as

Walt Disney (DIS) Q2 revenue down 13%; earnings beat estimates

Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and

Three key factors that bode well for Tattooed Chef (TTCF) going forward

Shares of Tattooed Chef Inc. (NASDAQ: TTCF) have gained 57% over the past 12 months but has dropped 25% since the start of this year. The sentiment on the stock

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top