Nike Inc. (NYSE: NKE) beat Wall Street’s estimates on both the top and bottom lines with its results for the fiscal second quarter of 2019. Net income rose 10 percent from a year earlier, rising to $847 million, or 52 cents per share, from $767 million, or 46 cents per share. Analysts had expected income of 46 cents per share.
Nike said revenue grew in nearly every category, with footwear and apparel growing in the double digits globally. Revenue came in at $9.37 billion for the quarter, beating estimates of $9.17 billion. The sportswear brand also improved its gross profit margins, posting gross profit margins of 43.8 percent, higher than consensus estimates of 43.5 percent.
The athletic apparel giant posted strong sales in North America and China for the quarter. In North America, Nike’s biggest market, sales rose 9 percent to $3.78 billion, beating estimates of $3.7 billion. During a conference call last quarter, Nike executives said that the company was on track for “strong, sustainable growth” in the North American market.
In China, sales climbed 26 percent from the same quarter a year ago, reaching $1.54 billion, versus $1.43 billion anticipated. During Singles’ Day in China, the country’s biggest day for online shopping, sales broke records and increased by 40 percent from last year. Executives said they weren’t seeing any impact from friction on trade between the U.S. and China.
Mark Parker, chairman and CEO of Nike, said in a statement, “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.”
Shares of Nike surged 8.1 percent following the latest earnings results, which capture the three months ending in November. The stock was up 7 percent for the year-to-date. The company currently has a market value of about $110.5 billion.