Nike (NKE) Tops Q2 EPS by 7c

Nike (NYSE: NKE) reported Q2 EPS of $0.50, $0.07 better than the analyst estimate of $0.43. Revenue for the quarter came in at $8.2 billion versus the consensus estimate of $8.09 billion.

Gross margin contracted 140 basis points to 44.2 percent.

The effective tax rate was 24.4 percent, compared to 19.1 percent for the same period last year, primarily due to an increased mix of U.S. earnings, which are generally subject to a higher tax rate.

Inventories for NIKE, Inc. were $5.0 billion, up 9 percent from November 30, 2015, due to a one percent increase in NIKE Brand wholesale unit inventories and increases in average product costs per unit primarily due to product mix, as well as higher inventories associated with growth in DTC.

“NIKE’s ability to attack the opportunities that consistently drive growth over the near and long term is what sets us apart,” said Mark Parker, Chairman, President and CEO, NIKE, Inc. “With industry-defining innovation platforms, highly anticipated signature basketball styles and more personalized retail experiences on the horizon, we are well-positioned to carry our momentum into the back half of the fiscal year and beyond.”

For earnings history and earnings-related data on Nike (NKE) click here.

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