Nike sales surge on North America, EMEA growth; earnings flat
Nike Inc. announced on Tuesday total revenues for the second quarter surged 17% to $13.3 billion, on the back of double-digit sales growth in North America and Europe, and in its namesake Nike brand.
Analysts had expected $12.57 billion, according to IBES data from Refinitiv.
The Portland, Oregon-based company said revenues for its Nike brand were $12.7 billion, up 18% on a reported basis, with strong growth across all geographies and channels.
Revenues for Converse were $586 million, up 5%, led by double-digit growth in North America, partially offset by declines in Asia.
By region, the company's North America region surged 30% to $5.83 billion, while sales in Europe grew 11% to $3.49 billion. Asia Pacific and Latin America grew 19%, offsetting a 3% decline in Greater China revenues.
By channel, Nike direct sales were $5.4 billion, up 16% and Nike brand digital sales increased 25%. Wholesale revenues grew 19%.
Net income for the quarter ending November 30 was $1.3 billion, flat compared to prior year, and diluted earnings per share was $0.85, increasing 2%.
"Nike's results this quarter are a testament to our deep connection with consumers," said John Donahoe, president and CEO, Nike, Inc.
“Our growth was broad-based and was driven by our expanding digital leadership and brand strength. These results give us confidence in delivering the year as our competitive advantages continue to fuel our momentum."
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