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Investing.com – Nike reported Monday fiscal second-quarter earnings that topped Wall Street analysts as strength in North America offset weakness in China as Covid-led store closures weighed on sales in its key Asia market.
Nike (NYSE:NKE) shares rose 4% in after-hours trading after the report.
Nike reported EPS of 83 cents on revenue of $11.36 billion. That topped analysts’ estimates for EPS of 63 cents on revenue of $11.25 billion.
Nike brand digital sales increased 12%, or 11% on a currency-neutral basis, as 40% growth in North America helped offset weakness in China “largely due to lower levels of available inventory resulting from COVID-19 related factory closures,” the company said.
Sales in China, the company’s main market, decreased 20%, to $1.84 billion.
Gross margin increased 280 basis points to 45.9%, led by margin expansion in the company;’s direct to consumer business following lower markdowns, and a higher mix of full-price sales.
