Nike just beat on earnings and now its stock is at an all-time high.
For its fiscal second quarter the sportswear retailer reported profit of $0.90 per share, topping expectations for earnings of $0.86 while futures orders rose more than expected.
In after hours trade on Tuesday shares of Nike were up about 3% to as high as $136, a new record high for the company.
In the second quarter revenue came in at $7.7 billion, missing expectations for $7.8 billion though the company said in its earnings announcement that the company’s 4% revenue growth was negatively impacted by 8% due to currency adjustments.
Sales in China, one of the company’s most important growth markets, rose 34% in the second quarter excluding currency adjustments.
The strong US dollar has been a drag on sales for a number of US companies over the last year as sales are worth nominally less when adjusted back into dollars from currencies that have lost exchange value against the dollar when compared to the same period last year.
Futures orders in Nike’s second quarter rose 20% excluding the impact of currencies, topping expectations for futures to rise about 13.6%. Futures orders are important for Nike as most of their retailers will get the best discount on clothing ordered at least 90 days — give or take: it depends on the size of your operation — before it is delivered to their store.
Futures were particularly strong in China where orders jumped 34% excluding currency impacts, better than the 22% increase that was expected.
In its release Nike also reminded shareholders that starting on Thursday the stock will be split again — Nike executed a 2-for-1 stock split back in late 2012 — with each existing shareholder getting two shares of Nike for every one share currently owned.
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