Nike records a record high on Thursday as it announces its quarterly performance results

The American multinational retailer of footwear, equipment, apparel, and accessories, Nike, announced its quarterly performance results on Thursday. Printing better than expected earnings per share and revenue in the second quarter, the stock was reported to have gained in the stock market.

Nike Records $10.33 Billion In Revenue In The Second Quarter

Based on Refinitiv’s data, analysts had expected the company to note $10.09 billion in revenue in the second quarter. In terms of earnings per share (EPS), experts had forecast 58 cents for Nike. The earnings report on Thursday, however, announced Nike to have generated a significantly higher $10.33 billion in revenue, while the EPS was recorded at 70 cents per share in the second quarter.

Nike has performed fairly upbeat in the stock market in 2019 so far. Share prices were seen trading at $74 per share at the start of the year. Keeping above the opening level throughout the year, Nike has recently registered a record high of $101.15 in the past week. The gain was also reported sustainable as the stock closed the week at $99.96 on Friday. In extended trading, share prices were seen above $100 again.

The $124.55 billion company, however, recorded gains ahead of the earnings report on Thursday. Following a record high on Thursday, the stock dropped by 2% despite the upbeat performance results for the second quarter.  

According to Nike, the second quarter saw a sharp increase in the demand of its Jordan brand that offered limited-edition sneakers and athletic apparel in the quarter. The company further added that Jordan has posted its very first billion-dollar quarter as well. The rise in sales was attributed to the rising demand for the basketball focused brand among women and the foreign markets.

Nike Reports Growth In All Geographies In Q2

The report also accentuated Nike’s net income to have raised to $1.12 billion in 2019’s Q2 as compared to a much lower $847 million that was posted in the same quarter last year. In terms of total revenue, the growth was highlighted as 10% as compared to the last year. The report was particularly optimistic as Nike reported all geographies to have record growth in revenue and sales.

Global digital sales for Nike hiked by 38% in the quarter. Online sales, the company added, recorded 70% growth in North America following the start of the holiday season with Black Friday. At $3.98 billion, the overall sales in North America, however, still fell shy of the analysts’ estimate of $4 billion in the second quarter.

Nike also cited the higher tariffs to have contributed to weighing on the overall profitability due to increased prices.