Tags: nike | profit | earnings | shoes

Nike Profit Tops Estimates as North American Sales Gain

Thursday, 20 Dec 2012 05:06 PM

Nike Inc., the world’s largest sporting-goods company, reported second-quarter profit that topped analysts’ estimates as sales gained in North America.

Excluding losses associated with the Umbro and Cole Haan businesses Nike is selling or has sold, profit was $1.14 a share, the Beaverton, Oregon-based company said today in a statement. Analysts projected $1 a share, the average of 18 estimates compiled by Bloomberg.

While sales have slowed down or even declined in overseas regions, Nike’s largest market of North America remains a strength, with revenue gaining 17 percent amid demand for running shoes. Orders for the Nike brand from December to April gained 14 percent in North America.

“North America is still the driver for them,” Chris Svezia, an analyst for Susquehanna Financial Group in New York, said in a telephone interview before the results. Price increases have been countering rising costs for labor, he said.

Total orders for the Nike brand from December to April, excluding currency exchange-rate changes, advanced 7 percent. Analysts projected a gain of 7.1 percent, the average of four estimates. Orders for September to January rose 8 percent. Orders on that basis from China decreased 7 percent, following a 6 percent decline in the previous period.

Net income in the quarter ended Nov. 30 declined 18 percent to $384 million from $469 million a year earlier, Nike said in the statement.

Nike rose 3.3 percent to $102.28 at 4:19 p.m. in New York. The shares had gained 2.7 percent this year through the end of today’s regular trading.

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