.Nike brand revenues were up 18% in the three months to November 30,
excluding currency movements, with growth reported in every region
except Japan, and in every key category except Action Sports .
.However, gross margin was down 260 basis points to 42.7%, thanks
mostly to higher product costs, offsetting the positive impact of
increased direct to consumer sales, price increases and cost reductions .
.Meanwhile, inventories were up 35% to $3.2 billion, while Nike brand
inventories rose 39%, with 20% of that growth attributed to strong
demand and more timely deliveries from suppliers .
.The other 19%, however, was due to “significantly higher product
input costs,” Nike said, adding that inventories remained “broadly
consistent” with pre-downturn levels .
.Futures orders for Nike brand products scheduled for delivery in the
December to April period totalled $8.9 billion, up 13% on last year’s
figure .
.Nike president and CEO Mark Parker said of the results: “Our strong
second quarter results demonstrate that the Nike portfolio is a powerful
engine for growth.” .