Nike Inc.’s shares fell in after-hours trading on Thursday after the activewear giant reported a dip in its closely watched futures orders, along with second-quarter profits and sales that sprinted past Wall Street’s expectations.
Included in the sales numbers for the quarter ended Nov. 30 were growth rates of 18.1 percent to $4.27 billion in Nike brand footwear and 11 percent to $2.29 billion for the brand’s apparel.
Futures orders for the Nike brand fell considerably short of those lofty marks, with December-through-April orders, excluding Nike Golf and Hurley, up between 7 and 11 percent, not taking into account expected currency fluctuation. “The growth reflects continued strong demand for the Nike brand, even as we anniversary robust prior-year orders for global football [soccer] product in advance of the 2014 World Cup,” said Don Blair, chief financial officer, during a late afternoon conference call. “Excluding global football, total futures order growth this quarter was essentially in line with the numbers we reported last year.”
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Futures orders, covering the September-through-January period, were up 11 percent, or 14 percent at constant currency, when Nike reported first-quarter results in September. The disparity pressured the stock, which in after-hours trading fell 2.8 percent to $94.40 after rising 2.7 percent to $97.08 during Thursday’s regular session. Shares finished 25 percent above their adjusted closing price of $77.69 at the end of 2013.
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In the second quarter, net income grew 22.7 percent to $655 million, or 74 cents a diluted share, from $534 million, or 59 cents, in the comparable 2013 period. Revenues grew 14.8 percent to $7.38 billion from $6.43 billion.
Converse sales, reported separately from those for Nike brand merchandise, rose 20.6 percent to $434 million, while the brand’s earnings before interest and taxes increased 10.1 percent to $186 million.