Nike Q2 Profit Rises 40% With Growth In North America, China Contributing
Nike's Q2 profit "jumped 40%, with a surge in Western Europe sales, as well as growth in North America and greater China, helping to drive" results, according to Michael Calia of the WALL STREET JOURNAL. The company for the quarter ended Nov. 30 "reported a profit" of $537M, or 59 cents a share, up from $384M, or 57 cents a share, a year earlier. The year-ago period included a $137M loss "from discontinued operations." Revenue "rose 8%" to $6.43B. Nike "continued to benefit from strong demand in the U.S. and several international markets." Its "continued success with product launches amid a tight environment for consumers also has helped, earning plaudits from market observers." Nike said that overall revenue for the brand "rose 9% in the period, excluding currency fluctuations, with growth coming from every product type, geography and key category," and that North American operations "posted a 9.2% revenue increase, while its Western Europe segment's sales surged 18%." Nike brand "future orders -- an indicator of coming growth -- grew 4% in China and 1% excluding currency impacts." Worldwide future orders "increased 12%, compared with growth of 6% in the same period a year ago" (WALL STREET JOURNAL, 12/20). In Portland, Allan Brettman wrote revenues for Converse were $360M in Q2, up 11% on a currency-neutral basis, "driven by strong performance in the company's largest owned markets: North America, the United Kingdom, and China." Nike's selling and administrative expenses grew 14% to $2.1B. Demand creation expense was $691M, up 13% "versus relatively low levels in the prior year, driven by marketing support for key product launches, consumer running events and upcoming global sporting events, including" the 2014 World Cup and Sochi Games (Portland OREGONIAN, 12/20). Shares of Nike closed trading at $77.34 on Friday, down 1.18% from the close of business on Thursday (SBD Global).