Nike beats by $0.01, reports revs in-line (78.26 -0.29)
Reports Q2 (Nov) earnings of $0.59 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.58; revenues rose 8.0% year/year to $6.43 bln vs the $6.44 bln consensus.
- Futures orders at end of Q2 (ex-FX) +13% vs street expectations of ~10% and +7% last year.
- Revenues for the NIKE Brand were $6.1 billion, up 9% on a currency neutral basis, with growth in every product type, geography and key category.
- Revenues for Converse were $360 million, up 11% on a currency neutral basis, driven by strong performance in our largest owned markets: North America, the United Kingdom, and China.
- Inventories for NIKE, Inc. were $3.7 billion, up 11% from November 30, 2012. NIKE Brand wholesale unit inventories increased 7% to support future demand. Changes in foreign currency exchange rates and product cost drove an ~4 % point net increase in NIKE, Inc. inventory growth.
- Gross margin increased 140 basis points to 43.9%. Gross margin benefitted from a shift in the mix of the Company's revenues to higher margin products and businesses, higher average prices, easing raw materials product input costs and continued strength in the higher margin Direct-to-Consumer business. These benefits were partially offset by unfavorable changes in foreign exchange rates and higher labor product input costs.
- During Q2, co repurchased a total of 5.5 million shares for ~$402 million as part of the four-year, $8 billion program approved by the Board of Directors in September 2012.