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Orders for Nike-branded shoes and clothing scheduled for delivery from December 2012 through April 2013, known as futures orders, were up 14 percent in North America, Nike's most mature market. "In North America, we created great nike outlet shop momentum. This is somewhat counterintuitive to some, given this market size and assumed maturity. But I see tremendous growth potential in North America," Chief Executive Mark Parker said on a call with analysts. Worldwide orders for the Beaverton, Oregon-based company were up 6 percent, the same as last quarter.
Nike's gross margins fell 30 basis points at the end of its fiscal second quarter. The cheap nike shoes company said it continues to expect gross margin expansion in the fourth quarter of fiscal '13 with those coming in more or less flat in the full year. For the second quarter ended November 30, the company earned $384 million, or $1.14 a share, from continuing operations. Analysts, on average, were expecting the company to earn $1 a share, as per Thomson Reuters I/B/E/S. Revenue rose 7 percent to $6.0 billion.
Nike had been caught with excess inventory in Nike outlet key markets like China and was finding it difficult to tackle intense competition and frequent promotional sales by local brands, while distributors and retailers remain wary in an uncertain economy. On a call with analysts, finance head Don Blair said the company "proactively canceled orders and reduced futures to tightly manage the amount of new product flowing into the (Chinese) market," so as to Nike wade shoes be able to handle the extra inventory already present there.