Nike Inc (NYSE: NKE) reported stronger-than-expected results for its second quarter on Thursday.
Revenues increased 10% to $9.4 billion, up 14% on a currency-neutral basis.
Net income increased 10% to $847 million driven primarily by strong revenue growth and gross margin expansion while diluted earnings per share increased 13% from the prior year to $0.52 reflecting a 2% decline in the weighted average diluted common shares outstanding.
For the quarter, double-digit revenue growth was driven by strategic execution of the Consumer Direct Offense across all dimensions of the portfolio globally.
According to CEO Mike Parker, "NIKE’s ambitious digital transformation is driving strong results and momentum in North America and in our international geographies. We’re incredibly energized about 2019 – with a full innovation pipeline; the most personal, responsive retail experiences in the industry; and a supply chain that’s delivering speed at scale."
Diluted earnings per share for the quarter were 52 cents, an increase of 13% driven by double-digit revenue growth, gross margin expansion and a lower average share count, partially offset by higher selling and administrative expenses and a higher effective tax rate.
Moreover, the “Just-do-It” the company also said that, during the second quarter, it repurchased a total of 16.1 million shares for approximately $1.3 billion as part of the four-year, $12 billion program approved by the Board of Directors in November 2015.
As of November 30, 2018, a total of 183.3 million shares had been repurchased under this program for approximately $11.3 billion. In June 2018, the Board of Directors authorized a new four-year $15 billion share repurchase program that will commence upon the completion of the current program.
Shares jumped $5.45, or 8.1% to $72.98
