Nike (NKE) said today that, despite weak domestic sales, its profit grew 9 percent in the second-quarter on strong sales overseas.
BEAVERTON, Ore. — Shoe and apparel company Nike said today that, despite weak domestic sales, its profit grew 9 percent in the second-quarter on strong sales overseas.
The Beaverton, Ore.-based company reported its net income rose to $391 million, or 80 cents a share, compared with net income of $359.4 million, or 71 cents a share in the same quarter last year.
The company said its total revenue grew 6 percent to $4.6 billion, from $4.3 billion last year. Changes in currency-exchange rates boosted revenue by 1 percentage point for the quarter.
The profit figure slightly exceeded Wall Street’s expectations. Analysts polled by Thomson Reuters expected the company to earn 79 cents a share on sales of $4.73 billion.
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Nike President and Chief Executive Officer Mark Parker said the results demonstrate the strength of the brand. He said the current state of the industry and the world offer opportunities for Nike to become a stronger leader.
“In challenging times like these, it’s especially important to stay focused on what we do best — delivering the most innovative and relevant product, strengthening our relationship with consumers and driving excellence into every area of our business,” Parker said in a statement. “That’s how we continue to lead the industry, take market share from competitors and grow our business.”
The company saw strong sales growth in Asia and other foreign markets. Revenue in Asia jumped 22 percent for the quarter. But domestic sales were weak. Total revenue in the U.S. decreased 1 percent, with significant drops in equipment sales.
The company also saw a change in its future orders, which are products scheduled to be delivered between December and April. Future orders dropped 1 percent lower than such orders reported for the same period last year. Excluding the effect of changes in foreign-exchange rates, reported orders grew 6 percent.