NIKE, Inc. (NYSE: NKE)
Nike shares added $5.27, or 7.80% to change hands at $72.80 in pre-market hours on Friday.
Investors responded positively after fiscal second-quarter results of the athletic apparel company crushed Wall Street estimates, boosted by growth in its e-commerce business and solid international sales. Nike reported 13% growth in earnings during the second quarter on a 10% revenue gain.
The largest sneaker maker in the world posted revenue growth in almost every segment. Global apparel and footwear revenues in particular jumped by double digits during the three months ended November 30, 2018. Although Nike did not talk about its “Just Do It” campaign starring quarterback-turned-activist Colin Kaepernick, the controversial ad did not dampen sales.
NKE Earnings & Outlook
Nike said that revenue increased 10% to $9.37 billion for the quarter, ahead of estimates of $9.18 billion by Refinitiv. Net income came to $847 million, or $0.52 per share, an increase of 13% from $767 million, or $0.46 per share, in the same three months a year ago. Analysts surveyed by Refinitiv were expecting the company to report adjusted earnings of $0.45 per share.
North America sales of the Beaverton, Oregon-based company were $3.78 billion, up 9% year over year. Sales in the Middle East, Africa and Europe totaled to $2.31 billion, a rise of 8% from the same period last year. Sales in its Asia Pacific & Latin America segment grew 2% to $1.3 billion. Meanwhile, sales in China grew 26% to $1.54 billion, marking the 18th quarter in a row that Nike has recorded growth in the country.
Nike CEO Comments
“NIKE’s ambitious digital transformation is driving strong results and momentum in North America and in our international geographies,” said Mark Parker, Chairman, President and CEO, NIKE, Inc. “We’re incredibly energized about 2019 – with a full innovation pipeline; the most personal, responsive retail experiences in the industry; and a supply chain that’s delivering speed at scale.”
NIKE, Inc. Profile
NIKE, Inc. engages in the design, development, marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. It operates through the following segments: North America; Europe, Middle East & Africa; Greater China; and Asia Pacific & Latin America; Global Brand Divisions; Converse; and Corporate.
The North America; Europe, Middle East & Africa; Greater China; and Asia Pacific & Latin America segments refers to the design, development, marketing, and selling of athletic footwear, apparel, and equipment. The Global Brand Divisions represents NIKE Brand licensing businesses.
The Converse segment designs, markets, licenses, and sells casual sneakers, apparel, and accessories. The Corporate segment consists of unallocated general and administrative expenses. The company was founded by William Jay Bowerman and Philip H. Knight in 1964 and is headquartered in Beaverton, OR. – CNN Money