Nike (NYSE:NKE) on Thursday reported quarterly earnings and sales that beat analysts’ expectations, as more customers flocked to its stores for limited-edition Jordan sneakers and ordered athletic apparel from its website.
The company said its Jordan brand had its first ever billion-dollar quarter, thanks to new innovation and a spike in interest in the basketball-focused label, including among women and in markets outside the U.S.
"I’ve never been more optimistic about the future of this company," CEO Mark Parker said.
Net income rose to $1.12 billion, or 70 cents a share, in the second quarter ended Nov. 30, from $847 million, or 52 cents per share, a year ago. That was better than the 58 cents analysts were expecting.
Revenue was up about 10% to $10.33 billion from $9.37 billion a year ago, beating expectations for $10.09 billion. Nike said it saw strength across all geographies.
And it said digital sales were up a whopping 38%, thanks to a boost at the start of the holiday shopping season. It said online sales surged more than 70% in North America on Black Friday.
But sales in North America overall still came up short. They climbed 5.3% during the period, reaching $3.98 billion. Analysts were calling for sales of $4 billion.
Nike also blamed tariffs for higher product prices, which weighed on profitability. Gross margins rose 20 basis points to 44%, slightly less than expectations for 44.1%.
Shares in NKE lost $1.84 Friday, or 1.8%, to $99.34
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