Nike Inc.'s results for the fiscal second quarter beat analyst expectations, although sales in its largest geographic market of North America decreased.
Nike reported net income of $767 million, down 9% from the $842 million reported in the same quarter last year. This quarter's figure beat GAAP analyst expectations of $661.79 million, according to the mean consensus estimate compiled by S&P Capital IQ.
The athletic footwear and apparel company's fiscal second quarter ended Nov. 30. Nike reported results for the quarter on Dec. 21. It did not release a full-year outlook.
Similarly, diluted earnings per share came in above analyst expectations. The company reported diluted EPS of 46 cents, compared to the mean consensus for normalized EPS of 40 cents, according to S&P Capital IQ. That is down 8% from diluted EPS of 50 cents reported in the same quarter last year. The company attributed the drop to a decline in gross margin on unfavorable exchange rates and higher costs per unit as well as higher selling and administrative expenses.
The company's revenue grew 5% to $8.55 billion. The measure exceeded the S&P Capital IQ consensus mean of $8.39 billion.
Revenue in Nike's North American division, the largest of its geographical markets, declined 5% to $3.49 billion from $3.65 billion in the same period last year. In its Greater China division, meanwhile, sales jumped 16% to $1.22 billion from $1.05 billion in the prior year quarter. Nike's Europe, Middle East and Africa division revenue shot up 19% to $2.13 billion from $1.79 billion.