Nike Shares Hit A New High With The Marathon.

The slowdown in China's economy has not affected Nike, and the sports giant still has strong growth momentum in the Chinese market.

Beijing time on the morning of December 23rd, Nike released the second quarter of fiscal year 2016 earnings report.

As of November 30th, Nike earned $0.90 a share in the quarter and sales increased by 4.1% to $7 billion 690 million.

Eliminate

In the second quarter, the Greater China region's revenue grew by 24% to $938 million.

In this quarter, Nike's net profit increased by 20% to 785 million dollars, and gross profit margin increased by 0.5 percentage points to 45.6%.

In the second quarter, earnings per share were US $0.90, which exceeded the average estimate of US $0.86.

Although sales revenue increased by 4.1% to 7 billion 690 million US dollars, the exchange rate was still lower than the analyst's estimate of US $7 billion 810 million.

The two quarter's increase is mainly due to the trend of fashion.

The trend of slanting.

Of the US $7 billion 690 million quarter sales, $7 billion 300 million came from Nike's main brand, excluding exchange rate effect, which increased by 13% over the same period last year.

But Nike's CONVERSE brand sales revenue of $398 million, down 5% compared to the same period, mainly due to the European consumer market weakness.

Nike said that Nike's brand orders increased by 20% between December 2015 and April 2016, excluding exchange rate effects.

This figure is higher than the 13.6% growth expected by analysts.

On the whole, this family

On the whole, it is not affected by the weakness of consumer spending, and continues to maintain the dominant position of the brand in the global market.

In the highly watched Chinese market, Nike was also not troubled by the slowdown in China's economic growth. In the second quarter, Nike's revenue in the Greater China region increased by 24% to 938 million dollars.

Excluding the effect of exchange rate, Nike's orders in Greater China grew 34% from December 2015 to April 2016, up 22% from the expected growth rate.

"Nike is very concerned about China's macroeconomic fluctuations, but at the same time, our brand has never been stronger, and the market has never been so healthy."

Nike chief financial officer Andrew Campion said in a conference call.

Morning Star Inc analyst Paul Swinand said: "overseas markets have great potential. Investors should interpret the trend of Chinese consumers from future orders, that is, they still have the resources to buy new Western goods, which highlights the long-term growth potential of China's middle class."

As early as the first quarter's earnings report, sales in the Greater China region surged 30% to $890 million, of which footwear growth was particularly evident.

Nike continued to grow by 24% in the two quarter.

The growth of Nike in the Chinese market is not only due to the development trend of domestic sports culture and sports trend, but also related to the marathon race.

The second quarter coincides with the centralization of Chinese marathon events, including the Shanghai marathon sponsored by Nike.

As the top ranked company in sports, Nike products are often the first choice on the consumer list.

Therefore, this series of Marathon events is one of the factors that Nike performs well in China.

After the announcement of the earnings report, Nike shares rose 4.1% to 137.31 dollars in the US stock market, reaching the highest historical value of Nike's stock price.

At the close, the stock rose 2% to 134.50 dollars.

As of December 22nd closing, Nike's stock price rose 37% in 2015.

At the same time, Nike also reminded investors that the $8 billion share repurchase plan implemented in 2012 will be completed at the end of the 2016 fiscal year (May 2016).

In November this year, Nike announced the relay shareholder's gratitude program. In the next four years, the company will continue to spend $12 billion to repurchase 11% of its shares.