The sporting goods company Nike disappointed its investors despite higher-than-expected revenues.
Sales in the second quarter (end of November) rose by one percent to $12.4 billion, as the company announced on Thursday in Beaverton (Oregon). Analysts had previously expected a decline on average. But Nike boss Elliott Hill was initially unable to convince skeptical investors of the figures. The US group continues to have problems in China and with its Converse brand. The shares fell more than five percent in after-hours US trading.
The gross margin – i.e. the ratio of what is left of the sales prices after the manufacturing costs – fell by 3 percentage points to 40.6 percent, with Nike primarily blaming import duties in North America for this. The bottom line is that profits fell by almost a third to $792 million because Nike also spent more money on marketing.
