Nike has positive Q2 earnings report
The shoe company beats estimates in its latest earnings report.
Nike has released a positive second quarter (Q2) earnings report. The company beat earnings estimates and is a rare bright spot in the bearish US stock market. The corporation’s stock has risen more than 5% in after-hours trading because of the revenue report.
Nike’s earnings and defying expectations
The shoe company’s revenue was $9.37 billion in Q2, more than the expected $9.18 billion financial experts expected. Earnings per share was 52 cents, beating the 46 cents that was projected. Sales in North America rose to $3.78 billion, a surge of 8.5%. The corporation also grew in China, generating $1.54 billion in income for Nike.
Despite competition from other shoe companies like Allbirds and Under Armour, Nike is still the dominant sneaker brand. There were also worries about the Chinese tariffs on the US affecting the company, because 20% of the corporation’s goods are manufactured in the Asian nation. However, the business improved its revenue against the trade challenges. Nike’s positive earnings report will hopefully be good news for the troubled retail industry.
Nike looks to the future
Nike’s investment in partnerships with online retailers has helped the brand grow. The sportswear company’s chief executive officer (CEO), Mark Parker, praised the corporation’s sales improvement and looked forward to next year in a statement.
‘Nike's ambitious digital transformation is driving strong results and momentum in North America and in our international geographies. We're incredibly energised about 2019 - with a full innovation pipeline; the most personal, responsive retail experiences in the industry; and a supply chain that's delivering speed at scale,’ said Parker.
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