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NEW YORK, United States — Nike Inc. posted second-quarter results that surpassed analysts' estimates, soothing concerns that the world's largest sports brand is losing ground to competitors such as Adidas AG and Under Armour Inc.
Profit was 50 cents a share in the period, which ended November 30, Nike said in a statement after the market closed on Tuesday. That compared with the 43-cent average of analysts’ projections. Sales rose 6 percent to $8.2 billion, beating estimates for $8.09 billion.
The results helped rebuff critics who warned that Under Armour and a resurgent Adidas were stealing Nike's market share, especially among US shoppers. Consumer demand globally helped fuel sales last quarter, chief executive officer Mark Parker said in the statement. Lower selling and administrative expenses also helped bolster profit.
“We are well-positioned to carry our momentum into the back half of the fiscal year and beyond,” said Parker, 61.
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The stock, which has been on pace for its first annual decline in eight years, rose as much as 4.2 percent to $53.98 in late trading.
Future orders, a key benchmark that investors have used to assess Nike’s growth, weren’t included in the press release. In an effort to downplay their impact of the figure, the company said in September that orders weren’t an adequate proxy for growth and that it would change how they are disclosed. Nike will now report them on its conference call with analysts, which is scheduled to start at 5pm New York time.
By Matt Townsend; editors: Nick Turner and Lisa Wolfson.
