Tags: Nike | profit | estimates | products

Nike Profit Tops Estimates as New Products Help Sales

Thursday, 19 Dec 2013 05:45 PM

Nike Inc., the world’s largest sporting-goods company, posted second-quarter profit that topped analysts’ estimates as higher-priced shoes boosted sales.

Net income in the three months through November rose 40 percent to $537 million, or 59 cents a share, from $384 million, or 42 cents, a year earlier, the Beaverton, Oregon-based company said Thursday in a statement. Profit excluding some items was 59 cents a share. The average of 24 analysts’ estimates compiled by Bloomberg was 58 cents.

Chief Executive Officer Mark Parker has been introducing premium products that sell for higher prices, such as $160 Flyknit running shoes and $225 Hypervenom soccer cleats, while bolstering the company’s online business. Nike’s gross margin, the percentage of sales left after subtracting the cost of goods sold, expanded 1.4 percentage points to 43.9 percent.

“I’m a real bull on this Flyknit technology” that allows customization, said Paul Swinand, an analyst at Morningstar Inc. in Chicago. “That is the next wave of innovation and it’s in its infancy right now. They’re the leader, they’ve got the technology.”

Nike rose less than 1 percent to $78.82 in late trading at 5:11 p.m. in New York. The shares gained 52 percent this year through today’s close of regular trading, compared with a 27 percent increase for the Standard & Poor’s 500 Index.

Sales rose 8 percent to $6.43 billion. Analysts projected $6.44 billion, on average.

Orders for the Nike brand from December to April rose 13 percent, excluding the effects of foreign-currency exchange-rate fluctuations. Analysts estimated a 9.6 percent gain, on average.

Next year’s Olympics and World Cup are helping future orders and gross margin, Swinand said.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Companies
Nike Inc., the world's largest sporting-goods company, posted second-quarter profit that topped analysts' estimates as higher-priced shoes boosted sales.
Nike,profit,estimates,products
271
2013-45-19
Thursday, 19 Dec 2013 05:45 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved