Tags: nike | earns | profit

Nike Profit Tops Analysts’ Estimates

Tuesday, 20 Dec 2011 04:52 PM

Nike Inc., the world’s largest sporting-goods company, Tuesday reported second-quarter profit that topped analysts’ estimates as sales of footwear and apparel surged in North America.

Net income in the quarter ended Nov. 30 rose 2.6 percent to $469 million, or $1 a share, from $457 million, or 94 cents, a year earlier, Beaverton, Oregon-based Nike said in a statement. Analysts projected 97 cents a share, the average of 18 estimates compiled by Bloomberg. Nike’s profit has surpassed analysts’ projections in 21 of the past 22 quarters.

Chief Executive Officer Mark Parker has been trying to maintain profit growth amid higher raw-material and labor costs by increasing sales and raising prices. Total revenue rose 18 percent to $5.73 billion in the quarter. Orders for December to April, excluding currency changes, advanced 13 percent, surpassing analysts’ average projection for a 12.7 percent gain.

“They have great sales momentum,” Matt Arnold, an analyst at Edward Jones & Co. in Des Peres, Missouri, said before the results. Nike has been boosting revenue through innovation, especially in the lightweight running category, said Arnold, who recommends buying Nike shares.

“Innovation can be the catalyst that unwinds pent-up demand,” he said.

Nike rose 1.1 percent to $94.67 at 4:19 p.m. in New York. The shares had gained 9.6 percent this year through the end of today’s regular trading.

Sales in North America, Nike’s largest market, rose 21 percent to $2.07 billion.

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Nike Inc., the world s largest sporting-goods company, Tuesday reported second-quarter profit that topped analysts estimates as sales of footwear and apparel surged in North America.Net income in the quarter ended Nov. 30 rose 2.6 percent to $469 million, or $1 a share,...
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Tuesday, 20 Dec 2011 04:52 PM
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