Nike Gains on Earnings Beat
Shares of sports apparel giant Nike (NYSE: NKE) traded up over six percent in the after-hours session on Thursday following a positive earnings report from the company.
Nike reported a second quarter earnings per share figure of $1.14, more than the $1 analysts had estimated. Revenue was bit lighter than expected at $5.96 billion -- analysts were looking for $6.01 billion. Management promised to increase gross margin the fourth quarter.
On the conference call, Nike's CEO Mark Parker said he was confident that the company could increase its sales in China further despite any economic slowdown.
Nike has long been among a group of U.S. companies that have seen their stocks affected by the general state of the Chinese economy. Other notable companies included in this group are Yum! Brands (NYSE: YUM) and Tiffany (NYSE: TIF). All have significant exposure to the Chinese consumer.
The company said it cancelled Chinese orders to reduce its inventory in the market.
Shares of Nike traded around $105 in the after-market.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.