Nike Q2 Profit Rises - Update

(RTTNews) - Nike Inc. (NKE), the world's largest athletic shoes and apparel maker, Tuesday said its second-quarter profit rose 7 percent from a year ago, driven largely by higher revenues.

Beaverton, Oregon-based Nike's second-quarter profit rose to $842 million or $0.50 per share from $785 million or $0.45 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.43 per share for the quarter.

Revenues for the quarter rose 6 percent to $8.18 billion from $7.69 billion last year. Revenues were up 8 percent on a currency neutral basis. Analysts had a consensus revenue estimate of $8.09 billion for the quarter.

The company said the revenue growth was driven largely by global consumer demand across the Nike brand portfolio.

Gross margin declined to 44.2 percent from 45.6 percent last year, as higher average selling prices were offset by, higher product costs, unfavorable foreign exchange and the impact of higher off-price sales.

Nike brand North America revenues were up 3 percent, while Western Europe rose 7 percent and Central and Eastern Europe inched up 1 percent. Greater China jumped 12 percent and Japan revenue jumped 16 percent. Revenues from emerging markets gained 6 percent.

"NIKE's ability to attack the opportunities that consistently drive growth over the near and long term is what sets us apart," said CEO Mark Parker. "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."

NKE closed Tuesday's trading at $51.79, up $0.94 or 1.85%, on the NYSE. The stock further gained $1.85 or 3.57% in the after-hours trade.