Nike Reports Strong Q2 Earnings Despite Sales Struggles

Investing.com — Nike reported its fiscal second-quarter results on Thursday, exceeding expectations even as the sportswear giant faces sluggish sales despite a recent uptick in promotional activity.

Nike Inc (NYSE:NKE) shares surged 7% in after-hours trading following the earnings announcement.

The company announced Q2 earnings per share of $0.78 on $12.4 billion in revenue. Analysts polled by Investing.com had anticipated EPS of $0.65 on $12.18 billion in revenue.

Despite the positive earnings report, revenue fell 8%, with Nike brand revenues down 7% to $12 billion. Gross margin declined by 100 basis points to 43.6%, attributed to "higher discounts and changes in channel mix," according to the company's statements.

Moreover, in China, Nike continues to face challenges, with sales decreasing by 27% to $375 million.