NIKE Inc. (NYSE:NKE) reported the second quarter financial results during after hours on Tuesday. Net income was $785 million, which increased from $655 million compared with last year. They had a strong customer demand which drove revenue by 4% to $7.69 billion for the second quarter. Diluted earnings per share increased faster than revenue, up 22%, mostly due to gross margin expansion, lower effective tax rate and lower average share count, which more than offset higher SG&A investments in NIKE, Inc. brands and business capabilities.
“Our strong Q2 growth and profitability show that NIKE continues to drive real momentum through the Category Offense – by going deep with consumers by sport and serving them completely,” said Mark Parker, President and CEO, NIKE, Inc. “And our powerful global portfolio of businesses, combined with strong financial discipline, continue to drive significant shareholder value. We see tremendous opportunity ahead as we enter an Olympic and European Championships year with a full pipeline of inspiring innovation for athletes everywhere.”
Global futures orders for NIKE Brand athletic footwear and apparel scheduled for delivery during next quarter will 15% higher than orders reported for the same period last year. Excluding currency fluctuation, orders in future would have increased 20%.
According to the second quarter financial results, Trevor Edwards, brand president of NIKE, said sales on Nike.com increased more than 50%. The company announced online sales in Switzerland, Norway, and Canada during the three months ended in November with plans to do the same in Chile, Turkey, and Mexico recently.
After NIKE released the second quarter financial results. Shares jumped up to $136.39 in extended hours on Tuesday. However, it decreased 2.24% to $128.90 on Wednesday morning.
According to the Dow Jones Market Data Group, currently Nike is the best performing stock in the Dow Jones Industrial Average, increased about 38% in total return so far this year. Nike is plan to split stock to 2-for-1 after close of trading on Wednesday.