Nike's third-quarter profit jumped more than 30 percent because of strong sales overseas and beneficial currency exchanges, the athletic-shoe...
PORTLAND — Nike’s third-quarter profit jumped more than 30 percent because of strong sales overseas and beneficial currency exchanges, the athletic-shoe and apparel giant said Wednesday.
Nike said its net income grew to $463.8 million, or 92 cents a share, up from $350.8 million, or 68 cents a share, in the same quarter of the prior year.
Revenue for the fiscal quarter grew 16 percent to $4.54 billion, up from $3.93 billion.
U.S. revenue gained 5 percent, European sales climbed 23 percent, the Americas revenue gained 20 percent and sales in Asia rose 27 percent.
Most Read Business Stories
- Amazon sued by Black cloud-computing manager over alleged racial discrimination and sexual harassment
- The penthouse atop Smith Tower is on the rental market for the first time
- Costco, Whole Foods rise in Greenpeace rankings of grocery chains' plastic use
- Screening to detect prior coronavirus infections launched by Adaptive Biotech, with Microsoft's help
- Downtowns will be back, but Seattle has choices to make
Sales in China surged more than 50 percent as consumers bought shoes and clothing before this summer’s Olympic Games. “Asia really blew it away,” said Peter Kwiatkowski, a portfolio manager at Fifth Third Asset Management in Cincinnati, which includes Nike stock in its $22 billion in assets.
Changes in currency-exchange rates accounted for 6 percentage points of Nike’s revenue growth for the quarter.
The results exceeded Wall Street’s projections. Analysts surveyed by Thomson Financial had expected the company to earn 81 cents a share on revenue of $4.36 billion. Nike stock, which had climbed 16 cents to $61.83 in the regular trading session Wednesday, added 42 cents to $62.25 in the extended trading session after the financial results were announced.
Nike President Mark Parker said the results are a “clear indication that our strategy is working and that we’re on track to achieve our financial goals for this fiscal year and beyond.”
The $29 million sale of Nike’s Starter brand to Iconic Brand Group is included the quarter’s income. Other recent deals by the Beaverton, Ore., company — such as its acquisition of British soccer company Umbro and the sale of its Bauer Hockey unit — are not reflected.
The geographic breakdown of revenue numbers was reported by Bloomberg News