Nike remain on the ball with strong second quarter results

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Shanghai.China-NOV,10,2016;Jordan brand store. One of famous sports fashion brands worldwide and it is one of the world's largest suppliers of athletic shoes and apparel.It's the first brand in China.

Nike shares rose in extended trading on Tuesday after reporting better-than-expected figures for their fiscal second quarter, including a 7 percent rise in income.

Revenues for the sportswear retailer were up 6 percent overall, totalling $8.2 billion in the period between September and November.

However, exchange rates had a negative effect on the group’s earnings, decreasing pretax income by approximately $29 million.

“Nike’s ability to attack the opportunities that consistently drive growth over the near and long term is what sets us apart,” said Mark Parker, Chairman, President and CEO of Nike.

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“With industry-defining innovation platforms, highly anticipated signature basketball styles and more personalized retail experiences on the horizon, we are well-positioned to carry our momentum into the back half of the fiscal year and beyond.”

Nike’s solid quarterly earnings came on the back of increased sales in some of the firm’s key markets, with Asia and Europe performing strongly. The group saw a 12 percent rise in revenue in China, alongside a 16 percent rise in Japan.

On a product-by-product basis, Nike’s basketball range led the strong figures. The Nike Jordan brand accounted for about 15 percent of Nike’s wholesale revenue in 2016, with Nike president Trevor Edwards telling analysts on a conference call that, “Basketball is back.”

Nike (NYSE:NKE) shares rose 3.5 percent to $53.61 after hours and are currently up 1.85 percent at 51.79 (1150GMT). However overall Nike has been one of the worst performing stocks on the market, with shares falling 17 percent this year alone.