Business | Markets
Nike shares climb on robust US sales
Nike Inc's quarterly earnings beat Wall Street estimates as the world's largest athletic footwear and apparel company reported robust US sales and orders growth, sending its shares up 5 per cent.
- Agencies
- Published: 23:35 September 25, 2008
San Francisco: Nike Inc's quarterly earnings beat Wall Street estimates as the world's largest athletic footwear and apparel company reported robust US sales and orders growth, sending its shares up 5 per cent.
Slowing growth in the United States, the company's largest and most mature market, has concerned Wall Street in recent quarters, but investors took a 3 per cent rise in future US orders as good news in a bad economy.
"The key thing that will drive the stock up is futures in the US market," said Susquehanna Financial analyst John Shanley. "Investors are going to be very pleased."
Higher prices in the United States also helped to boost gross profit margins, which rose to 47.2 per cent of sales in the quarter from 44.8 per cent a year earlier.
"I think it's a great sign that they can raise prices in the US," said McAdams Wright Ragen analyst Sara Hasan.
Nike Brand President Charlie Denson cited higher-priced products recently featured in the Beijing Olympics as well as select apparel items.
"We feel really good about some of the new premium product that has gone into the market," Denson told analysts during a conference call.
Net profit fell to $510.5 million, or $1.03 per share, in the fiscal first quarter ended August 31, from $569.7 million, or $1.12 per share, a year earlier. Revenue rose 17 per cent to $5.4 billion in the quarter.
A $105.4 million tax benefit a year earlier boosted year-ago earnings by 20 cents per share.
Share this article
More from Markets
More from Business
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
It costs a million to raise a child
Generation Z doesn't leave home at 18, but stay with the parents until mid-20s
-
Investing in funds doesn't come cheap
Many people are unaware of the effect of different expenses on their returns
-
Firm turns televised events into marketing dream
Drops anchor in Dubai to sell world's richest yachting races
