Breaking News Bar
posted: 12/24/2012 4:50 AM

Nike profit tops estimates

hello
Success - Article sent! close
  • Nike Inc., the world's largest sporting-goods company, reported second-quarter profit that topped analysts' estimates as sales gained in North America.

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

 
Bloomberg News

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

Excluding $137 million in losses associated with the Umbro and Cole Haan businesses Nike is selling or has sold, profit was $1.14 a share, the Beaverton, Oregon-based company said today in a statement. Analysts projected $1 a share, the average of 18 estimates compiled by Bloomberg.

While sales have dropped in some regions abroad, Nike's largest market of North America remains a strength, with revenue gaining 17 percent amid demand for running shoes. Orders for the Nike brand from December to April gained 14 percent in North America.

"North America looks strong," Chris Svezia, an analyst for Susquehanna Financial Group in New York, said in a telephone interview. Nike also spent about the same on marketing as a year earlier, which helped profit surpass estimates, he said.

Total orders for the Nike brand, excluding currency exchange-rate changes, advanced 7 percent. Analysts projected a gain of 7.1 percent, the average of four estimates. Orders on that basis from China decreased 7 percent.

Net income in the quarter ended Nov. 30 declined 18 percent to $384 million from $469 million a year earlier, Nike said in the statement. Total revenue rose 7.4 percent to $5.96 billion.

Nike rose 5.2 percent to $104.10 at 5:03 p.m. in New York. The shares had gained 2.7 percent this year through the end of today's regular trading.

The company spent $613 million on marketing compared with $616 million a year ago.

Share

Interested in reusing this article?

Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.

The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.

Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Name * Company Telephone * E-mail *

Message (optional)

Success - Reprint request sent Click to close
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.
    help here