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Strong Demand and Higher Margin Products Boost Nike Q2 Earnings

Consumer demand for Nike hasn’t skipped a beat. The athletic apparel and equipment giant released its second quarter results for the 2015 fiscal year on Thursday, reporting a 15 percent growth in sales reaching $7.4 billion.

The company expects demand for Nike products to carry deep into 2015. The report revealed a 7 percent increase on worldwide future orders scheduled for delivery from December 2014 through April 2015. Excluding changes in currency, orders would have reached 11 percent.

Nike also reported an increase in gross margin, up 120 basis points to 45.1%, thanks to a shift in mix to higher margin products, and a rise in earnings, up 23 percent to $655 million. Diluted earnings per share increased 25 percent to $0.74.

President and CEO of Nike Inc. Mark Parker said, “Our strong second quarter results once again demonstrate Nike is a growth company. The power of our portfolio continues to unlock growth, as we keep a laser focus on our biggest opportunities. The breadth and depth of that portfolio has helped us consistently deliver strong results—quarter after quarter, year after year.”