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.Copyright © 2014 Paddock Publications, Inc. All rights reserved.