Beaverton, Ohio — Nike announced that its sales grew 6% to $8.2 bn driven by double-digit currency growth in western Europe, greater China, and emerging markets in the second quarter of 2016 compared to 2015.
The firm said that its gross margin fell by 1.4% to 44.2% in the period, as higher average selling prices were offset by higher product costs, and unfavourable changes in foreign exchange rates.
However, while sales revenue increased between the 2015 and 2016 quarters, looking at earnings before interest and taxes the picture is slightly different.
Sales in Nike’s footwear division, which consumes polyurethanes, were up 5% in the quarter at $4.8 bn compared to $4.6 n in the equivalent period in 2015. Sales for footwear in the first half of 2016 were up 6%, compared to the 2015 half at $10.3 bn.
In North America, EBIT grew 3% to $882 m in the quarter, in China it grew 15% to$375 m and in Japan grew 2% to $48 m — all compared with the previous 2015 quarter. There were significant declines in western Europe, down 23% at $236 m and central and eastern Europe which fell by 24% to $58 m in the quarter.
Overall, in comparison with the equivalent 2015 quarter there was a 1% decline in EBIT to $1.247 bn, down from $1.255 bn.
Comparing the first six months of 2016 with the first six months of 2015, there was a 12% fall in EBIT across the group from $2.88 bn to$2.55 bn.
The largest falls were in western Europe which saw a 21% decline to $628 m; in central eastern Europe which saw a 20% fall to $139 m and in emerging markets where EBIT fell by 18% to $408 m.
EBIT in North America was unchanged at $1.9 bn for the six-month period ending on 30 November 2016.
