Beavertown, Oregon – Nike saw revenues rise 4% to $7.7bn in the second quarter of its 2016 financial year with future orders up 15%, according to a company announcement.
The company said it was able to increase gross margin, reduce its effective tax rate which offset increased sales, general and administration expenses, compared to the same year-earlier period.
Nike added that it had managed to increase the gross margin to 45% in the quarter. This would have been higher, the company said, but for higher materials costs and unfavourable exchange rates. The firm added that the value of its inventories was up 11% at $44.6bn because it is expanding its direct-to-customer markets and the higher cost of the units held in stock.
Footwear sales in North America in the three months ended 30 November 2015 were $2162m; in Western Europe: $845m; Central and Eastern Europe: $183m and $600m in Greater China. Overall footwear sales were $4.6bn in the quarter compared with $4.3bn in the equivalent quarter of 2015 or up 8%.
At the half year mark, global footwear sales were $9.7bn in the first half, compared with $9bn in the first half of the previous year, Nike said.