Revenues from continuing operations grew 7.4 percent, to $5.96 billion from $5.55 billion, and were up 10 percent on a constant currency basis. Nike’s closely watched futures-orders metric stood at $9.3 billion, up 6 percent.
Gross margin contracted 30 basis points to 42.5 percent of sales, as favorable pricing and raw-material costs were offset by higher labor costs and currency fluctuation.
Shares advanced $1.22, or 1.3 percent, to $99 during the trading day and rose another $5.15, or 5.2 percent, to $104.15 following the disclosure of results.
The Nike brand’s footwear and apparel businesses registered similar sales increases, with footwear up 6.7 percent to $3.3 billion and apparel ahead 7.2 percent to $1.8 billion. North America, the brand’s biggest market, generated the largest increases in both sales and profitability, with sales expanding 17.2 percent to $2.42 billion and operating income moving up 30.5 percent to $556 million.
Mark Parker, president and chief executive officer, told participants on an early evening conference call, “In North America we created great momentum. This is somewhat counterintuitive to some, given this market’s size and assumed maturity. But I see tremendous growth opportunity in North America fueled by continued success in transforming the marketplace along category lines.”
Charlie Denson, president of the Nike brand, cited double-digit growth in running, basketball and men’s training for the successful North American performance. Also contributing to the strong showing was Nike’s launch of National Football League merchandise. “We delivered a new level of performance and style for every player in the NFL,” he said.
In China, the only market to experience sales or profit declines, sales pulled back 11.2 percent, to $577 million, while operating income slid 15.9 percent to $185 million. Donald Blair, chief financial officer, said on the company call that gross margin in China improved “as the impact to clean up the [distribution in the] market was more than offset by the benefits of higher prices and easing raw-material costs.” He noted other positive signs in China — including lower inventory levels, improving comparable-store sales and higher apparel sell-throughs — as the company works to better tailor its assortments and marketing to the Chinese market.
“That said, we still expect lower revenue and [earnings before interest and taxes] from this geography over the next few quarters as we work to position our business to realize [its] tremendous growth potential,” Blair said.
For the first half of the year, net income, including discontinued operations and associated costs, fell 14.6 percent to $951 million, or $2.07 a diluted share, as revenues rose 8.7 percent to $12.43 billion. The discontinued Umbro and Cole Haan operations are excluded from revenue figures.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)