Nike Q2 revenues increase by 17 percent

US sportswear giant Nike has reported revenue of 13.3 billion dollars in the second quarter of the year, up 17 percent from a year earlier, or up 27 percent on a currency-neutral basis.

Revenue at the Nike brand came in at 12.7 billion dollars, up 18 percent on a reported basis and up 28 percent on a currency-neutral basis, with strong growth across all geographies and channels.

Meanwhile, Converse made revenue of 586 million dollars, up 5 percent on a reported basis and up 12 percent on a currency-neutral basis, led by double-digit growth in North America, and partially offset by declines in Asia.

“Nike’s results this quarter are a testament to our deep connection with consumers,” said Nike CEO and president John Donahoe in a statement.

He added: “Our growth was broad-based and was driven by our expanding digital leadership and brand strength.”

Nike Direct sales were 5.4 billion dollars, up 16 percent on a reported basis and up 25 percent on a currency-neutral basis.

Nike shares rise on strong Q2

Nike brand digital sales increased 25 percent on a reported basis, or 34 percent on a currency-neutral basis, while wholesale revenues grew 19 percent on a reported basis and 30 percent on a currency-neutral basis.

The company added that gross margin decreased 300 basis points to 42.9 percent and diluted earnings per share for the quarter were 85 cents, up 2 percent.

Nike’s board of directors announced dividends of 480 million dollars this year, up 10 percent from the prior year.

Shares in the company were up 12.7 percent in premarket trading on Wednesday.

Nike’s finance chief and executive vice president Matthew Friend said: “Consumer demand for Nike’s portfolio of brands continues to drive strong business momentum in a dynamic environment.

“We remain focused on what we can control, and we are on track to deliver on our operational and financial goals - setting the foundation for sustainable, profitable growth.”