On Wednesday, Nike Inc (NYSE:NKE)’s shares declined -51.15% to $64.42.
NIKE, Inc. (NKE) stated financial results for its fiscal 2016 second quarter ended November 30, 2015. Strong consumer demand drove revenue growth across the NIKE Brand portfolio. Diluted earnings per share grew faster than revenue, up 22 percent, primarily due to gross margin expansion, a lower effective tax rate and a lower average share count, which more than offset higher SG&A investments in NIKE, Inc. brands and business capabilities.
Second Quarter Income Statement Review
- Revenues for NIKE, Inc. raised 4 percent to $7.7 billion, up 12 percent on a currency neutral basis.
- Revenues for the NIKE Brand were $7.3 billion, up 13 percent on a currency neutral basis, driven by double-digit growth in every geography and most key categories.
- Revenues for Converse were $398 million, down 5 percent on a currency neutral basis, as strong growth in North America was more than offset by a decline in Europe.
Gross margin raised 50 basis points to 45.6 percent, primarily due to higher average selling prices, partially offset by higher product input costs and unfavorable changes in foreign exchange rates.
Selling and administrative expense raised 5 percent to $2.6 billion. Demand creation expense was $769 million, flat as compared to the preceding year. Operating overhead expense raised 7 percent to $1.8 billion, reflecting continued growth in the Direct To Consumer (DTC) business, in addition to investments in operational infrastructure and consumer-focused digital capabilities.
Other income, net was $34 million comprised primarily of net foreign currency exchange gains, and a favorable settlement of a legal judgment related to a bankruptcy case in Western Europe. For the quarter, the Company estimates the year-over-year change in foreign currency related gains and losses comprised of in other income, net, combined with the impact of changes in currency exchange rates on the translation of foreign currency-denominated profits, and reduced pretax income by about $109 million.
The effective tax rate was 19.1 percent, contrast to 25.4 percent for the same period last year, primarily due to adjustments in the preceding year to tax expense on intercompany transactions and an enhance in earnings from operations outside the U.S. in the current period, which are generally subject to a lower tax rate. These factors were partially offset by the resolution of tax audits across multiple jurisdictions in the preceding year period.
Net income raised 20 percent to $785 million, while diluted earnings per share raised 22 percent to $0.90, reflecting revenue growth, gross margin expansion, a lower tax rate and a one percent decline in the weighted average diluted common shares outstanding.
NIKE, Inc., together with its auxiliaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories for men, women, and kids worldwide. The company offers products in eight categories, counting running, basketball, football, men’s training, women’s training, sportswear, action sports, and golf under the NIKE and Jordan brand names.
KeyCorp (NYSE:KEY)’s shares gained 2.58% to $13.34. With its recent share price change, KEY market value has reached roughly $10.86 billion. The company has a Profit Margin (ttm) of positive 84.20%. The operating profit margin is 84.20%. The stock’s performance in 1 month is 2.49% and its volatility for the same period is 2.65%.
KeyCorp., operates as the bank holding company for KeyBank National Association that provides various retail and commercial banking services to individual, corporate, and institutional clients in the United States.
Canadian Solar Inc. (NASDAQ:CSIQ)‘s shares surged 3.49% to $28.90.
Canadian Solar Inc. (CSIQ) declared that its wholly owned partner, Canadian Solar Solutions Inc., accomplished the sale of its 10 MW AC EarthLight LP (“Earthlight”) to One West Holdings Ltd., an associate of Concord Green Energy Inc. (“Concord”). The plant, valued at over CAD$69.4 Million (USD$49.7 Million), is located in Georgina, Ontario and comprises of about 45,648 Canadian Solar MaxPower CS6X-300/310P PV modules. BowMont Capital and Advisory acted as financial advisor to Concord on this transaction.
This solar power plant will generate noteworthy environmental benefits. The amount of clean solar energy that the Earthlight plant will generate is estimated at 17,892 MWh per year and 344,697 MWh over 20 years. The amount of carbon dioxide that will be displaced during the system’s 20 year lifetime is about 237,686 metric tons, equivalent to taking about 50,000 cars off the road for one year.
Cliff McCracken, Senior Vice-President at Concord, remarked, “This is the fifth plant we have purchased from Canadian Solar in the past year and a half for a total installed capacity of 49 MW. We look forward to this to further complement our portfolio of green energy producing projects across Canada.”
Canadian Solar Inc., together with its auxiliaries, designs, develops, manufactures, and sells solar wafers, cells, and solar power products worldwide. The company operates in two segments, Module and Energy.
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