NIKE, Inc. (NYSE:NKE) Reported Strong Q2 Numbers after the market close on Thursday. The company said its revenue was $6.0 billion, up by 7 percent. Its net income was $521 million and its diluted earnings per share (EPS) increased by 11 percent to $1.14. Shares are up over 6% in after-hour trading, which is rare for a stock with low volatility.

According to the company, its EPS growth rate is faster than its revenue growth due to SG&A leverage, increase in other income, and lower average share count, which reduced the impact of an increase in its effective tax rate and a low gross margin during the quarter.

In a statement, Mark Parker, president and CEO of NIKE, Inc. (NYSE:NKE) expressed his confidence on the company’s growth strategies based on its financial performance in the second quarter.

Parker said, “We have a focused and flexible portfolio that allows us to target the biggest growth opportunities at all levels – brand, category and product. We stay connected with our consumers, and that enables us to deliver innovations that excite the marketplace, grow the business and deliver more value to shareholders.”

Based on the financial statement of the company, the Nike brands achieved an 11 percent increase in revenue in all key categories, product types, and geographies except in Greater China.

Its gross margin dropped by 30 basis points to 42.5 percent due to higher labor costs, unfavorable fluctuations of the foreign exchange rate, and changes in the mix of its revenues to lower margin products and businesses.

During the period, NIKE, Inc. (NYSE:NKE)’s selling and administrative expenditures increased at a slower rate than its revenue to $1.8 billion, including $613 million demand creation, and $1.2 billion operating overhead expenses due to additional investments in the company’s wholesale businesses.

Nike also reported $17 million other income that were from gains in foreign exchange and other operating items. Its effective tax rate was 26.8 percent, higher than the 24.1 percent effective tax rate during the same quarter last year.

The company ended the quarter with $3.5 cash and short-term investments and $3.3 billion worth of inventories. Nike repurchased 4 million shares with an estimated market value of $384 million during the second quarter.