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Nike Profit Tops Estimates as North America Sales Gain

Thursday, 22 Mar 2012 04:56 PM

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

Net income in the quarter ended Feb. 29 rose 7.1 percent percent to $560 million, or $1.20 a share, from $523 million, or $1.08, a year earlier, Beaverton, Oregon-based Nike said Thursday in a statement. Analysts projected $1.17 a share, the average of 19 estimates compiled by Bloomberg. Nike’s profit has surpassed analysts’ projections in 22 of the past 23 quarters.

Nike, the maker of Air Jordan basketball shoes, has been using new products in categories such as running to lure consumers who are spending more on athletic gear across the industry. The strategy helped boost Nike sales 17 percent to $2.15 billion in North America, the company’s largest market.

“We see few negative catalysts” with Nike’s strong product pipeline and growth in emerging markets, Chris Svezia, an analyst for Susquehanna Financial Group in New York, wrote in a note to clients on March 20. Svezia has a neutral rating on Nike, meaning he expects the shares to rise or fall 15 percent in the next 12 months.

Nike rose 0.9 percent to $111.97 at 4:25 p.m. in New York. The shares had gained 15 percent this year through the end of today’s regular trading.


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2012-56-22
Thursday, 22 Mar 2012 04:56 PM
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