Nike Inc (NYSE:NKE) beaten analysts estimates

Free $100 Forex No-Deposit Bonus

Nike Inc (NYSE:NKE) stock rose 6.78% (As on Dec 21, 11:40:14 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 22. The company’s earnings totaled $1.34 billion in the second quarter of FY 22 compared with $1.25 billion, in last year’s second quarter. Nike direct sales were 4.7 billion dollars, up 9 percent on a reported basis and up 8 percent on a currency-neutral basis. Nike brand digital sales increased 12 percent, or 11 percent on a currency-neutral basis, led by 40 percent growth in North America. The company added that revenues in Greater China and APLA declined, largely due to lower levels of available inventory resulting from Covid-19 related factory closures. While closures had an impact across the company’s portfolio, North America and EMEA delivered growth due to higher levels of in-transit inventory entering the second quarter. However, despite continued inventory constraints and supply chain challenges, Nike direct grew 8 percent, led by North America Direct growth of 30 percent, including record Black Friday week results. Nike brand digital delivered strong revenue growth of 11 percent, led by double-digit growth in North America and APLA, partially offset by a decline in Greater China. Contributing to Nike direct growth was the steady normalization of owned physical retail with Nike owned stores up 4 percent.

NKE in the second quarter of FY 22 has reported the adjusted earnings per share of 83 cents, beating the analysts’ estimates for the adjusted earnings per share of 63 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 1.1 percent to $11.4 billion in the second quarter of FY 22, beating the analysts’ estimates for revenue of $11.22 billion. The gross margin increased 280 basis points to 45.9 percent, driven by margin expansion in our NIKE Direct business driven by lower markdowns, a higher mix of full-price sales and changes in foreign currency exchange rates, partially offset by lower full-price product margins largely due to increased freight and logistics costs.

Additionally, in the second quarter, Nike has returned approximately 1.4 billion dollars to shareholders, including dividends of 437 million dollars, up 14 percent from the prior year.

On the other hand, NKE has recently acquired RTFKT, a leading brand that leverages cutting edge innovation to deliver next generation collectibles that merge culture and gaming.

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.