Nike profits jump 40pc
Nike has seen profits jump 40 percent, helped by higher average selling prices and an increase in revenue around the world.
Fiscal second-quarter net income topped analysts’ expectations, though revenue came in slightly short. Nike’s shares rose 39 cents in aftermarket trading, having closed at $78.26 before the report. The stock has risen 52pc in the year to date, and hit an all-time high of $80.26 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. 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 $537m, or 59 cents per share. That compares with net income of $384m, or 57 cents per share, last year.
The company, based in Beaverton, Oregon, said revenue rose 8pc to $6.43bn from $5.96bn. Analysts expected earnings of 58 cents per share on revenue of $6.44bn, according to FactSet.
Selling and administrative costs rose 14pc to $2.1bn as the company ramped up advertising and marketing ahead of upcoming global sporting events such as the football World Cup in Brazil and Winter Olympics in Russia next year.
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 12pc year-on-year to $10.4bn.