Nike Inc (NYSE:NKE) shares rose 3.86% to $55.35 on Wednesday and an additional 0.40% in after-hours trading after the company printed its latest quarterly earnings report. The company has a market cap of $95.03 billion at 1.33 billion shares outstanding. Shares have been trading in a 52-week range of $47.25 to $68.19.
Nike reported earnings per share of $0.49, slightly better than the consensus at $0.48. Revenue for the quarter came in at $8.24 billion versus the consensus estimate of $8.28 billion. Components of the report showed that Greater China revenue was up 23% while future orders rose 11%.
Our consistent growth is fueled by innovation, which is why fiscal 2016 was such a breakthrough year for NIKE in everything we do,” said Nike CEO Mark Parker. “From product to manufacturing to how we serve our consumers – more personally and at scale – we’ve raised the bar of what’s possible.”
Parker added that their unrivaled roster of athletes has been instrumental in lifting the Nike brand. Their fiscal calendar of sports moments for the following year could continue to build on their business momentum and inspire customers.
Their earnings report also showed a 12% quarterly increase in inventories to $4.8 billion, driven by a 6% rise in Nike wholesale unit inventories and increases in average product cost per unit. Cash and short-term investments stood at $5.5 billion, which is $467 million lower than the same period last year as rowth in net income and proceeds from the issuance of debt in the second quarter were more than offset by share repurchases, investments in infrastructure and working capital, higher dividends, and a reduction in collateral received from counterparties to foreign currency hedging instruments.
Nike is a company that is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. It sells its products to retail accounts, through Nike-owned retail stores and online thru direct-to-consumer operations.
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