Well, that was an interesting week for Nike Inc (NYSE:NKE). After beating analyst expectations for the second quarter, NKE stock gained 4%, which more than makes up for the 1.3% NKE gave back over the past week.
If you need something to thank, thank global consumer demand. Nike attributes a worldwide surge in consumer affinity for Nike products as the main driver of revenue across the brand’s suite.
Here’s what Nike CEO Mark Parker had to say in the earnings release:
“NIKE’s ability to attack the opportunities that consistently drive growth over the near and long term is what sets us apart. With industry-defining innovation platforms, highly anticipated signature basketball styles and more personalized retail experiences on the horizon, we are well-positioned to carry our momentum into the back half of the fiscal year and beyond.”
On the sales front, Nike grew by 6% to $8.2 billion (8% on a constant currency basis). Of that, Converse accounted for $416 million, up 5% thanks to growth in the U.S. The bulk of that, of course, went to the Nike brand, which raked in $7.7 billion for a gain of 8% thanks to double-digit growth in Western Europe and Greater China (among other emerging markets).
The market was expecting revenue of $8.1 billion.
Net income, too, defied expectations. Earnings increased 7% to $842 million, while per-share earnings grew 11% to 50 cents. For comparison, the market expected EPS of 43 cents.
Overall, Nike’s numbers were slightly ahead of what analysts who were concerned about the geographic picture expected, and that was enough for NKE stock holders. At any rate, unless some profit-taking occurs, we’re now that much closer to Dow 20,000.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
