The sports apparel and footwear giant is on a roll as it reports increase in its sales in a number of major regions.
For the current year, Nike, Inc. has been the best performer on the Dow Jones Industrial Average Index as it manages to beat the earnings expectations of analysts and investors in its most recent quarter of the current fiscal year. The sports and apparel wear giant has managed to do buy higher sales and orders. These results of the market leader in sports indicate more orders in the future and growth in the Chinese market.
In the second quarter, the analysts and stock experts had estimated earnings per share of 89 cents for Nike Stock which it managed to beat by reporting earnings per share of 90 cents. These earnings were for the second quarter of the current fiscal year, which ended on November 20, 2015. It’s safe to say that the American multinational corporation has been doing quite well in all the markets, as it has managed to report profits for fourteen consecutive quarters.
Furthermore, future orders rose by 20% in comparison to the estimates which showed an increase at 13.6%, excluding the currency effects, for the most recent quarter. The current orders that have been placed are scheduled to be delivered between December 2015 to April 2016; through these orders the market leader in sports will make good profits and huge gains because any order placed before 90 days gets good discounts.
In China, the future orders have increase by 34% which again surpassed the estimates that were at 22%. The revenue of the sportswear company has increased by 24% and is currently at $938 million in the Chinese market. In Chine over 100 million citizens are fans of the National Basketball Association (NBA) due to which the market leader has managed to gain popularity during the sports season. In the 2nd quarter, the sales for footwear in the region increased to $600 million indicating an increase of 30% and the sales for sports apparel increased by 15% to 306 million.
As for the other regions, in America the footwear sales hiked to $1.22 billion, showing an increase 18%. This increase in the region was mainly witnessed because of the latest trend of “athleisure”. In the e-commerce sector, it gained 50% by expanding the online business operations in Switzerland, Canada and Norway. The multinational organization has big plans for the next quarter as it plans to launch its e-commerce business in Chile, Turkey and Mexico.
Analysts are expecting the revenue to grow by 8.2% while the earnings per share is likely to be $1.03. According to the estimations the revenue is likely to be at 8.13 billion.
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