Nike has announced financial results for its second quarter ended on the 30th of November 2020. Revenue of the group in the period went up by 9%.
“Nike’s strong results during a dynamic environment show the power of staying on the offence. Fueled by compelling innovative product and global brand momentum, we continue to extend our leadership.
Our strategy is working, and we are excited about what’s ahead. Our second-quarter revenue performance was impacted by strong Nike brand digital growth of 84%, offset by lower revenue in our wholesale business and Nike-owned stores.
During the quarter, we experienced temporary door closures in geographies affected by rising COVID-19 cases; however, more than 90% of our owned stores are open today, with some operating on reduced hours.
We continue to experience year-over-year declines in physical retail traffic in North America, EMEA and APLA due to COVID-19 impacts and safety-related measures, partially offset by higher conversion rates”, commented John Donahoe, President and CEO.
Second Quarter Review
In the period under analysis, Nike group’s revenue increased by 9% to 11.2 billion US dollars compared to the prior year, up by 7% on a currency-neutral basis.
Revenue for the Nike brand were 10.7 billion US dollars, an increase of 8% compared to the prior year on a currency-neutral basis driven by strong double-digit growth in Nike Direct, as well as growth in Sportswear and the Jordan Brand, slightly offset by mid-single-digit declines in our wholesale business.
In the second quarter of the fiscal year, revenue for the Converse brand totalled 476 million US dollars, down by 4% on a currency-neutral basis, as double-digit growth in digital and growth in Asia were more than offset by declines in Europe and North America primarily due to tighter supply and strategic distribution shifts.
Net income reached 1.3 billion US dollars, up by 12% driven by strong revenue growth and lower selling and administrative expense, slightly offset by lower gross margin.