Nike profit jumps

 

Nike just do it 1Nike’s fiscal second-quarter net income has jumped 40 per cent, helped by higher average selling prices and an increase in revenue around the world.

Profit topped analysts’ expectations, though revenue came in slightly short.

Shares rose 39 US cents in aftermarket trading, having closed at $US78.26 before the report.

The stock has risen 52 per cent year to date, and hit an all-time high of $US80.26 last week.

The world’s largest athletic goods maker said Nike brand sales grew across every product type and region.

Sales of Converse brand items were especially strong in North America, Britain and China markets.

Profit margins were helped by Nike’s shift toward more profitable products and businesses, higher average prices and an easing in the cost of raw materials.

Net income for the three months that ended on November 30 rose to $US537 million ($A607.78 million), or 59 US cents per share.

That compares with net income of $US384 million, or 57 US cents per share, last year.

The company, based in Beaverton, Oregon, said revenue rose eight per cent to $US6.43 billion from $US5.96 billion.

Analysts expected earnings of 58 US cents per share on revenue of $US6.44 billion, according to FactSet.

Selling and administrative costs rose 14 per cent to $US2.1 billion as the company ramped up advertising and marketing ahead of upcoming global sporting events like the World Cup and Winter Olympics in 2014.

At the end of the quarter, worldwide future orders for Nike brand shoes and clothes scheduled to be delivered between December 2013 and April 2014 rose 12 per cent year-over-year to $US10.4 billion.

AP

Comments

Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

How have private-label products impacted your business?
Vote

Twitter

The shock @LiberalAus victory over the weekend could be good news for Australia's retail industry #retail #auspol https://t.co/qFvHayoF2Q

1 week ago

A new initiative, announced by @google at #CopenhagenFashionSummit,will help to understand the environmental impact… https://t.co/VmLrRHHp3p

2 weeks ago

Rising competition and crude oil prices have impacted @CaltexAustralia net profits in the first quarter of 2019… https://t.co/OE4VaIIReR

2 weeks ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered