Nike posts strong revenue, profit gains in Q2

By Ovunc Kutlu

ISTANBUL (AA) - Nike posted strong revenue and profit gains during the company’s second quarter, according to financial results.

The Oregon-based company saw revenues of $13.3 billion, according to a financial results statement released late Tuesday after the closing bell on the New York Stock Exchange (NYSE).

The figure is a 17% gain from $11.3 billion recorded in the same period last year.

Gross profits rose 10% to $5.7 billion from $5.2 billion; however, net income fell slightly by $6 million.

"In this current environment, our consumer demand stands out," CEO John Donahoe said during an earnings call. "Our Q2 growth was broad-based across our brands, channels and geographies."

He said Nike is also taking action to clear excess inventory, which has been a major hurdle for American companies during the holiday season.

"During the World Cup, the new Mercurial scored more goals than any other boot, led by Kylian Mbappe who won the Golden Boot as the tournament’s top scorer. In fact, Nike’s boots dominated the World Cup, with more goals scored than all other brands combined," noted Donahoe.

Nike's stock price was up with the strong results by as much as 13% in pre-market trading on the NYSE, climbing to $116.78 from Tuesday's close of $103.21 a share.