Nike’s growth in international markets helped the company’s quarterly profit along with sales beat Wall Street estimates on Thursday, although a drop in gross margins indicated severe cost competition in North America, its largest market.
Shares of the planet’s largest footwear maker were marginally down at $64.36 in after-market trading.
Nike’s second-quarter gross margins fell 1.2 percentage points to 43 percent due to stronger dollar along with higher production costs, the company said.
The company’s selling along with administrative expenses for the quarter rose 10 percent as This particular spent more on advertising to create demand from the muted North American market.
Fall in demand for its footwear along with sports equipment in North America led to a 5 percent decline in revenue by the market although This particular was more than offset by increased demand by Greater China along with European regions.
Quarterly revenue by Greater China rose 16 percent along with European region 19 percent.
Net income fell to $767 million, or 46 cents per share, from the quarter ended Nov. 30, by $842 million, or 50 cents per share, a year earlier.
Excluding one-time items, the Beaverton, Oregon-based company earned 46 cents per share on revenue of $8.55 billion.
Analysts on average had expected adjusted earnings of 40 cents per share along with revenue of $8.39 billion, according to Thomson Reuters.