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Nike Inc reported a solid rise in second quarter revenue on Tuesday, but posted a slightly drop in income as it booked higher sales costs in the quarter.
In the three months ended November 30, the footwear maker reported net income of $1.33 billion, down 0.4% from $1.34 billion the previous year. Basic earnings per share in the quarter, meanwhile, rose to $0.85 from $0.84.
Second quarter revenue rose 17% against the previous year, climbing to $13.32 billion from $11.36 billion as cost of sales jumped 24% to $7.60 billion from $6.14 billion.
Chief Financial Officer Matthew Friend said: ‘Consumer demand for Nike’s portfolio of brands continues to drive strong business momentum in a dynamic environment. We remain focused on what we can control, and we are on track to deliver on our operational and financial goals - setting the foundation for sustainable, profitable growth.’
In the six months ended November 30, net income fell 13% to $2.80 billion from $3.21 billion, while basic earnings per share dropped 12% to $1.79 from $2.03.
Revenue in the first half of its financial year rose 10% to $26.0 billion from $23.61 billion, meanwhile, as costs of sales rose 16% to $14.68 billion from $12.70 billion.
Chief Executive John Donahoe said the results give the firm the confidence in ‘delivering the year as our competitive advantages continue to fuel our momentum.’
The company declared a second quarter dividend of $0.340 per share, up 11% from $0.305 a year ago. That takes the half-year dividend to $0.645, up 11% from $0.580.
Nike closed up 0.2% at $103.21 on Tuesday in New York. In after-hours trading, the stock was up 6.7% at $110.13.
By Heather Rydings, Alliance News senior economics reporter
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