Nike Shares Slide Despite Strong North American Growth
On Thursday, Nike announced quarterly results that surpassed market forecasts. While sales in China declined, growth in North America helped balance overall performance.
The company’s second-quarter revenue rose 1% on a reported basis, but earnings per share dropped 32% year-on-year to $0.53. North American revenue climbed 9% to $5.63 billion, whereas its Greater China segment experienced a 17% fall, totaling $1.42 billion.
The negative sentiment extended to Europe, where shares of German sportswear rivals Adidas and Puma also dipped slightly on Friday morning.
Looking ahead, Nike expects a modest rise in North American sales but predicts a small decline in overall third-quarter revenue. The company also foresees a 1.75 to 2.25 percentage point reduction in gross margins, with tariffs contributing 3.15 percentage points of that decline.
During the quarter, wholesale revenue grew 8% to $7.5 billion, while direct-to-consumer sales fell 8% to $4.6 billion.
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