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Nike Tops Q2 Estimates as North America Strength Offsets China Weakness -Breaking

by Mike Robinson

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© Reuters.

By Yasin Ebrahim

Investing.com – Nike reported Monday fiscal second-quarter earnings that topped Wall Street analysts as strength in North America offset weakness in China as Covid-led store closures weighed on sales in its key Asia market.

After-hours trading for Nike shares increased 4% after the release.

Nike of 83cs on revenue $11.36billion. Analysts had expected that Nike would earn EPS of 63c on $11.25 billion.

Nike brand digital sales increased 12%, or 11% on a currency-neutral basis, as 40% growth in North America helped offset weakness in China “largely due to lower levels of available inventory resulting from COVID-19 related factory closures,” the company said.

Sales in China, the company’s main market, decreased 20%, to $1.84 billion.

Gross margin increased 280 basis points to 45.9%, led by margin expansion in the company;’s direct to consumer business following lower markdowns, and a higher mix of full-price sales.

 

 

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