Nike posted fiscal second quarter earnings and revenue that surpassed analysts’ expectation. However, the athletic footwear/apparel maker’s gross-margin fell shy of estimates, partly due to U.S.-China tariff war.
For its fiscal second quarter, Nike’s earnings came in at 70 cents a share, which exceeded analysts’ forecasts of 58 cents a share. The figure was alo higher than the year-ago quarter’s 52 cents .
Sales climbed +10% to $10.32 billion, compared to analysts’ estimates of $10.09 billion.
The company achieved its first-ever billion-dollar quarter, on the back of strong market for limited-edition Jordan sneakers as well as interest in other brands including women’s soccer.
Nike’s gross margin increased 20 basis points year-over-year to 44% in the quarter, missing analysts' estimates of 44.1%. Incremental tariffs in North America was cited as a major factor that raised the cost of goods sold and therefore hit the company’s bottom-line.