By Yasin Ebrahim
Investing.com - Nike (NYSE:NKE) reported on Friday second-quarter results that beat analysts' forecasts, underpinned by strong growth in China.
Nike shares rose more than 4% in after-hours trade following the report.
Nike announced earnings per share of $0.78 on revenue of $11.24B. Analysts polled by Investing.com anticipated EPS of $0.6185 on revenue of $10.55B.
Growth was seen across all geographies, led by Greater China reported revenue growth of 24%.
Nike brand digital sales increased 84%, with triple-digit growth in North America and strong double-digit increases in EMEA, Greater China, and Asia Pacific & Latin America, or APLA.
Gross margin decreased 90 basis points to 43.1%, primarily driven by "higher promotional activity to reduce excess inventory resulting from COVID-19 impacts and restructuring-related costs for the previously announced reorganization, both partially offset by favorable full-price product margins," the company said.
The company said it experienced temporary door closures during the quarter in geographies affected by rising COVID-19 cases, however, over 90% of its owned stores are open today, with some operating on reduced hours.
Donaldson had beat expectations on December 3 with first quarter EPS of $0.48 on revenue of $636.6M, compared to forecast for EPS of $0.445 on revenue of $615.01M.
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