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Nike (NKE) Posts Earnings Beat, Praises Direct-to-Consumer Efforts

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Nike, Inc. (NKE - Free Report) just released its second-quarter fiscal 2018 financial results, posting earnings of 46 cents per share and revenues of $8.55 billion.

Currently, NKE is a Zacks Rank #3 (Hold) and is relatively flat in after-hours trading shortly after its earnings report was released. Shares of Nike closed about 1.8% higher on Thursday.

Nike:

Beat earnings estimates. The company posted earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.39.

Beat revenue estimates. The company saw revenue figures of $8.55 billion, beating our consensus estimate of $8.39 billion.

Total revenues were up about 5% on a year-over-year basis. Revenues from the Nike brand were up 4% to $8.1 billion, while revenues for Converse were down 4% to $408 million.

Earnings were down about 8% from the year-ago period. Nike cited a decline in gross margin and higher selling and administrative expense as reasons for the earnings slump.

“This quarter, led by our Consumer Direct Offense, we accelerated international growth and built underlying momentum in our domestic business,” said CEO Mark Parker. “For the back half of the fiscal year, NIKE’s innovation line-up is as strong as it’s ever been and we’ll continue to actively shape retail through new differentiated experiences.”

Here’s a graph that looks at Nike’s earnings surprise history:

Nike, Inc. Price, Consensus and EPS Surprise

Nike, Inc. Price, Consensus and EPS Surprise | Nike, Inc. Quote

Nike, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Wholly-owned NIKE, Inc. subsidiary brands include Converse, which designs, markets and distributes athletic lifestyle footwear, apparel and accessories; and Hurley, which designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories.

Check back later for our full analysis on Nike’s earnings report!

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