Sportswear giant, NIKE, Inc. (NKE) reported strong fiscal Q2 earnings, as its digital sales witnessed a boost amid the pandemic as people have been logging into Nike’s workout and store apps driving significantly higher online sales all year.
Revenue increased about 9% to $11.24 billion in the second quarter ending Nov 30 beating analyst estimate of $10.56 billion. The company reported a 12% increase in profit to $1.25 billion, or 78 cents per share, beating analysts’ expectations of 62 cents per share. The company’s brand digital sales jumped 84% in fiscal Q2, with triple-digit growth in North America – its biggest market.
Selling and administrative expenses dropped 2% to $3.3 billion, further boosting profit, as the pandemic held Nike from spending as much on marketing its brands and sports events.
The company’s North American sales rose 1% in Q2 to $4 billion. Europe, Middle East & Africa sales increased 17% to $2.96 billion. Greater China sales soared 24% to $2.3 billion. Sales remained flat at $1.47 billion for the Asia Pacific & Latin America.
Nike expects annual revenue growth in the “low-teens,” up from its previous forecast of a high single-digit to low double-digit increase.
NIKE, Inc. (NKE) is the world’s top designer, marketer, and distributor of athletic footwear, equipment, apparel, and accessories. The Beaverton, Oregon-based company offers products for a wide variety of sports and fitness activities. To learn more about NIKE, Inc. (NIKE) and to continue to track its progress please visit the Vista Partners NIKE Coverage Page.