Why Nike Stock Is Running After Hours

Nike Inc NKE shares are trading higher in Tuesday's after-hours session after the company reported better-than-expected financial results.

What Happened: Nike said fiscal second-quarter revenue increased 17% year-over-year to to $13.31 billion, which beat average analyst estimates of $12.57 billion, according to Benzinga Pro data. The company reported quarterly earnings of 85 cents per share, which beat estimates of 65 cents per share.

China sales totaled $1.788 billion, down from $1.844 billion year-over-year. Nike Direct sales were up 16% year-over-year, while Nike brand digital sales jumped 25%.

Inventories totaled $9.3 billion, up 43% year-over-year. Margins fell to 42.9% as a result of higher markdowns, as well as other unfavorable cost changes.

Check This Out: Trading Strategies For Nike Before, After Q2 Earnings

"Our growth was broad-based and was driven by our expanding digital leadership and brand strength. These results give us confidence in delivering the year as our competitive advantages continue to fuel our momentum," said John Donahoe, president and CEO of Nike.

Management will host a conference call beginning at 5 p.m. ET to discuss Nike's fiscal second quarter results. 

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NKE Price Action: Nike has a 52-week high of $171.19 and a 52-week low of $82.22.

The stock was up 7% in after hours at $110.50 at time of publication, according to Benzinga Pro.

Photo: PublicDomainPictures from Pixabay.