The sportswear giant announced quarterly earnings and revenue that beat market expectations, with strength in North America offsetting a decline in sales in China, News.Az reports, citing foreign media.
Fiscal second-quarter revenues rose 1% on a reported basis, while earnings per share dropped 32% year-on-year to $0.53.
Nike posted a 9% increase in North American revenues, which climbed to $5.63 billion during the quarter. In contrast, revenue from its Greater China segment fell 17% to $1.42 billion.
Concerns about Nike’s outlook also weighed on European peers, with shares of German sportswear companies Adidas and Puma edging lower on Friday morning.
Looking ahead, Nike expects a modest revenue increase in North America and a low single-digit decline in overall revenues in the fiscal third quarter. The company also forecast a 1.75 to 2.25 percentage point decline in gross margins, including a 3.15 percentage point impact from tariffs.
Wholesale revenues rose 8% to $7.5 billion during the quarter, while direct sales declined 8% to $4.6 billion. Nike noted that higher tariffs contributed significantly to a 3% reduction in inventory levels and a 3 percentage point drop in gross margin.
Nike shares were already down more than 13% year-to-date as of Thursday’s close.
