Friday, September 24, 2010

Nike profit, future orders stronger than expected

DETROIT: Nike Inc posted a far stronger than expected quarterly profit on Thursday, Sept 23 due to strong demand in markets like North America and China, sending its shares up 5 percent.

The largest global player in the athletic shoe and clothing market also said future orders, excluding currency exchange rates, were up 13 percent, better than analysts had expected.

Net income in its fiscal first quarter rose 9 percent to $559 million, or $1.14 a share, compared with $513 million, or $1.04 a share, in the year-earlier period.

Analysts had expected $1.01 a share, according to Thomson Reuters I/B/E/S.

Sales in the quarter ended Aug. 31 rose 8 percent to $5.18 billion. Analysts had expected $5.22 billion.

Excluding currency fluctuations, revenue rose 10 percent.

Orders for Nike brand shoes and apparel scheduled for delivery from September 2010 through January 2011 totaled $7.1 billion and were up 10 percent from a year earlier. Excluding currency changes, those future orders rose 13 percent, better than analysts had expected.

Orders are a key gauge of demand and the company in the fourth quarter saw them rise 7 percent.

Nike shares rose 5.3 percent in after-hours trading after closing at $77.67. - Reuters


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