Amid continually slowing momentum in the North American market, international revenues and an accelerated focus on direct-to-consumer continue to propel Nike Inc. forward.
The firm today announced second-quarter results that top forecasts across the board, thanks to growth in international geographies and its e-commerce business. Those gains, once again, were partially offset by declining U.S. demand for its wares. (Dimming interest in Nike’s products in North America comes at a time when competitor Adidas has seeing blockbuster gains in the region for the better part of two years.)
Overall, Nike’s profits dipped 9 percent year-over-year to $767 million, or 46 cents per diluted share, but handily topped forecasts for diluted earnings per share of 40 cents.
Meanwhile, revenues increased 5 percent during the period to $8.6 billion, beating analysts’ bets for revenues of $8.4 billion.
“This quarter, led by our Consumer Direct Offense, we accelerated international growth and built underlying momentum in our domestic business,” said chairman, president and CEO Mark Parker, referencing a business strategy that the firm unveiled in June, focused on digital, innovation and targeting consumers in key cities. “For the back half of the fiscal year, Nike innovation lineup is as strong as it’s ever been, and we’ll continue to actively shape retail through new differentiated experiences.”
By brand, revenues at Nike were $8.1 billion, up 4 percent on a constant-currency basis, driven by EMEA (Europe, Middle East and Africa), Greater China and APLA (Asia Pacific and Latin America), including growth in the Sportswear and Nike Basketball categories.
Revenues for Converse were $408 million, down 4 percent on a currency-neutral basis, as international growth was more than offset by declines in North America.
As of 4:45 p.m. ET, Nike shares were gaining modestly after the market close — up 0.74 percent to $65.25. The stock ended the trading day up 1.86 percent to $64.77.