Nike reports quarterly income boost
Nike’s fiscal first-quarter net income rose 15% as sales of its athletic gear rose faster than its costs.
The world’s largest athletic shoe and clothing maker reported after the market closed yesterday that it earned 645 million US dollars, or 1.36 US dollars per share, for the quarter that ended on August 31.
That is up from 559 million US dollars, or 1.17 dollars per share, in the same quarter last year.
Nike’s revenue rose 18% to 6.08 billion US dollars. Excluding the impact of foreign exchange rates, revenue rose 11%.
That far exceeds the 1.21 US dollar per share and revenue of 5.75 billion US dollars that analysts polled by FactSet had expected on average.
Nike, based in Beaverton, Oregon, said demand for its product remained strong around most of the globe.
That helped make up for the higher prices it paid for raw materials and for selling more things at a discount, both of which hurt its profit margins during the period.
The company said its orders for this month through January were 16% higher than a year earlier.
The company also benefited from lower tax rates. And it repurchased 7.7 million shares during the quarter at a cost of roughly 649 million US dollars, which helped boost its per share results.
“It pays to be prudent in times like these,” chief executive Mark Parker said in a statement.
“It’s also essential that we remain on the offense, creating opportunities. We do that by connecting with consumers, designing innovative products and delivering amazing experiences.”
After falling 1.58 US dollars in regular trading to close at 84.18 US dollars as the markets plunged overall, the stock soared nearly 5% after hours.
