(RTTNews.com) - Shares of Nike Inc. ( NKE ), the world's largest athletic shoes and apparel maker, gained about 8 percent in extended trading hours on Thursday after the company reported a second-quarter profit and revenues that trumped Wall Street estimates.
Beaverton, Oregon-based Nike's second-quarter profit rose to $847 million or $0.52 per share from $767 million or $0.46 per share last year. On average, 32 analysts polled by Thomson Reuters expected earnings of $0.46 per share for the quarter.
The company said profit growth was driven largely by double-digit revenue growth, gross margin expansion and a lower average share count, partially offset by higher selling and administrative expenses and a higher effective tax rate.
Revenues for the quarter rose 10 percent to $9.37 billion from $8.55 billion last year. Analysts had a consensus revenue estimate of $9.17 billion for the quarter.
"Nike's ambitious digital transformation is driving strong results and momentum in North America and in our international geographies," said CEO Mark Parker. "We're incredibly energized about 2019 - with a full innovation pipeline; the most personal, responsive retail experiences in the industry; and a supply chain that's delivering speed at scale."
Gross margin rose to 80 basis points to 43.8 percent, driven mainly by higher average selling prices and margin expansion in Nike Direct, partially offset by higher product costs.
Revenues for the Nike Brand were $8.9 billion, up 14 percent on a currency-neutral basis, helped by accelerated growth across all geographies and in Nike Direct.
Revenues for Converse were $425 million, up 6 percent on a currency-neutral basis, mainly driven by growth in Asia and digital.
NKE closed Thursday's trading at $67.53, down $1.44 or 2.09%, on the NYSE. The stock, however, gained $5.45 or 8.07% in the after-hours trade.
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