(Updated - December 18, 2014 4:17 PM EST)

Nike (NYSE: NKE) reported Q2 EPS of $0.74, $0.04 better than the analyst estimate of $0.70. Revenue for the quarter came in at $7.4 billion versus the consensus estimate of $7.15 billion.

Gross margin increased 120 basis points to 45.1 percent. The increase was primarily attributable to a shift in mix to higher margin products, continued growth in the higher-margin Direct-to-Consumer (DTC) business and a modest benefit from foreign exchange. These positive factors were partially offset by higher product input costs.

Inventories for NIKE, Inc. were $4.2 billion, up 11 percent from November 30, 2013, driven by a 9 percent increase in NIKE Brand wholesale inventories as well as higher inventories associated with growth in DTC and Converse. NIKE Brand wholesale inventories were higher due to a 14 percent increase in units, while changes in the average product cost per unit, combined with the impact of changes in foreign currency exchange rates, decreased growth by approximately 5 percentage points.

As of the end of the quarter, worldwide futures orders for NIKE Brand athletic footwear and apparel scheduled for delivery from December 2014 through April 2015 were 7 percent higher than orders reported for the same period last year. Excluding currency changes, reported orders would have increased 11 percent.

*** Consensus estimates were looking for an increase of 11.3 percent.

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