Nike, Inc. reported earnings in its fiscal second quarter ended November 30 topped analyst expectations but also announced a program to cut costs by about $2 billion over the next three years, including through layoffs, as it sees a “softer” sales outlook for its fiscal second half.
EPS in the second quarter of $1.03 – a 21 percent increase versus the year-ago quarter – and topped analysts’ consensus target of 84 cents. Sales of $13.4 billion were slightly below Wall Street’s consensus estimate of $13.43 billion. Revenues were up 1 percent on a reported basis compared to the prior year and down 1 percent on a currency-neutral basis.
- Nike Direct revenues were $5.7 billion, up 6 percent on a reported basis and up 4 percent on a currency-neutral basis
- Nike Brand Digital sales increased 4 percent on a reported basis and 1 percent on a currency-neutral basis
- Wholesale revenues were $7.1 billion, down 2 percent on a reported basis and down 3 percent on a currency-neutral basis.
For more details about Nike’s Fiscal Q2, including CEO commentary on the guidance cut, cost cutting moves and concerns about the market, read more here:
EXEC: Nike’s Reduced Outlook, Planned Cuts and Market View Takes Broader Market Down
