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Tuesday, March 19, 2024
March 19, 2024

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Nike says strong demand drives boost in 2Q revenue, earnings

The Columbian
Published:

BEAVERTON, Ore. — Nike Inc. says strong consumer demand helped boost its second-quarter revenue and profit.

The athletic shoe and clothing company reported Thursday that it earned $655 million, or 74 cents per share, for the period that ended Nov. 30. That’s up 23 percent from the $534 million, or 59 cents per share, earned during the same period last year. Revenue jumped 15 percent to $7.38 billion from $6.43 billion.

Nike’s profit got a boost from the strong sales growth, improved margins and fewer outstanding shares.

The results topped Wall Street expectations. Analysts surveyed by Zacks Investment Research were anticipating earnings of 70 cents per share on revenue of $7.16 billion.

Nike also said that its worldwide futures orders, which are orders scheduled for delivery from December through April, rose 7 percent. Analysts watch that number closely as an indicator of demand for the current quarter.

But the futures order included a drop in Japan and emerging markets.

Investors, apparently spooked by that blip on the radar, sent shares of Beaverton, Ore.-based Nike’s shares down 2.5 percent in extended trading to $94.65.

Through the close of trading Thursday, Nike’s stock has risen 23 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 12 percent.

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