With another earnings beat of expectations on Wall Street, Nike continues to runaway with the crown as top sports apparel and shoe maker.
The athletic apparel and sneaker maker posted results that helped ease worries by investors over the threat of Nike rivals sprinting by the sports giant.
Nike posted an increase in sales of 6% for its fiscal second quarter. Sales for the quarter were $8.18 billion. Wall Street expected Nike sales to be only $8.1 billion. Net income for the apparel maker was up by 7% for the quarter to end at just over $842 million.
Per share earnings were 50 cents, beating estimates on Wall Street of 43 cents.
Nike CEO Mark Parker said during a conference call for earnings that the world of sports as well as use culture is always fast moving and the results from the second quarter come from the company’s obsession with consumers.
Knowing, he added, what the consumer needs and what is inspiring to them is so important. Parker added that is what drove Nike’s innovation and innovation in turn is what drives Nike’s growth.
Increased competition has been threatening Nike. Rivals such as Under Armour and Adidas have been attempting to take away market share.
A drop of 17% in Nike stock during 2016 has surprised some while Adidas has seen its shares soar by 62% since the start of 2016.
One important metric that investors watch is Future orders. They determine demand for products from Nike and the potential it has for growth.
That metric grew by 2% during the quarter. The growth was aided by increases in double digits in China as well as other emerging markets that helped to offset futures in the U.S. that dropped by 4%.
Sales in the U.S. represented close to 45% of all revenue at Nike.
While being watched still by its investors, Nike has started to downplay the futures metric, saying that during its earnings in the first quarter back in September that revenue and futures are now less correlated due to the company’s business activities always changing.
In an attempt to separate itself from others, Nike is beginning to experiment with technologies related to the future. Earlier in the year, Nike released a sneaker that was self-lacing.
The HyperAdapt 1.0 costs $720. Sales figures of the new shoe have not been disclosed, though Parker teased investors by saying the second and third generations were already being designed.