Nike Q2 tops estimates amid strong digital growth

Nike ran strong in the second quarter with top- and bottom-line growth that surpassed Street expectations. 

The athletic footwear and apparel giant reported net income of $1.25 billion, or $0.78 per share, for the quarter ended Nov. 30, compared to $1.12 billion, or $0.70 a share, in the year-ago period. Analysts had expected earnings per share of $0.68.

After declining in the past two quarters, revenue rose 9% to $11.24 billion, topping estimates of $10.56 billion. Nike said digital sales for its namesake brand increased 84% as more consumers shopped online during the pandemic.

“Nike’s strong results during a dynamic environment show the power of staying on the offense," said John Donahoe, president and CEO, Nike. "Fueled by compelling innovative product and global brand momentum, we continue to extend our leadership. Our strategy is working, and we are excited for what’s ahead."

The company noted that it continues to experience year-over-year declines in physical retail traffic in North America, EMEA and APLA due to COVID-19 impacts and safety-related measures, with the declines partially offset by higher conversion rates.

“With healthy inventory positions across all geographies, our return to growth is a testament to our digital strength, as well as our disciplined marketplace and financial management," added Matt Friend, executive VP and CFO, Nike.