New York — After hitting a record high on Thursday, Nike is finding it harder to keep investors happy.
Fiscal second-quarter profit rose to 70c a share, Nike said, beating 58c average of analysts’ estimates. The company overcame headwinds from tariffs that were stiffest in the period, boosting sales by 10% to $10.3bn and topping projections. Nike executives said they expect third-quarter revenue to grow by a high, single-digit percentage, and reiterated the same expectation for the full year. The company expects third quarter gross margin to remain flat year-on-year, at about 45.1%.While Nike routinely beats profit estimates, its shares don’t always follow suit. The company has exceeded estimates in every quarter but one going back to mid-2012, but the stock has declined about a third of the time.
Two possible negatives: profit margins and inventories. Nike’s gross margin expanded to 44%, short of estimates of 44.1%. The margins have grown as the company focuses more on selling direct to its customers.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: eNCA - 🏆 49. / 51 Read more »