Nike's Profit and Revenue Climb--Update
23 December 2015 - 9:04AM
Dow Jones News
By Tess Stynes
Nike Inc. said its revenue rose 4.1% in the latest quarter as
the world's largest sportswear maker continued to see strength in
its North America and China operations.
Shares rose 1.5% to $133.63 in recent after-hours trading as
adjusted per-share earnings topped expectations. Nike's stock, up
37% this year, is set for a 2-for-1 split on Thursday.
Excluding currency fluctuations, revenue rose 12%.
Revenue in the company's China division climbed 24%, while North
American revenue climbed 9.4%.
Nike's recent growth has been lifted in part by the so-called
athleisure movement, where consumers have increasingly been buying
athletic-styled clothes and shoes for everyday wear rather than
actual workouts. Under Armour Inc., and Skechers USA Inc. also have
benefited from the trend.
The athletic gear company said Nike brand futures orders, which
reflect products scheduled for delivery in the next six months,
rose 15% on a global basis, compared with an increase of 7% a year
earlier and 9% growth from the last quarter. Futures orders are
closely watched by investors as a benchmark for demand for Nike
products.
Excluding currency impacts, futures orders increased 20%,
compared with a year-earlier rise of 11% and growth of 17% in the
previous quarter.
Overall, Nike reported a profit of $785 million, or 90 cents a
share, up from $655 million, or 74 cents a share, a year
earlier.
For the period ended Nov. 30, the Beaverton, Ore., company
reported revenue of $7.69 billion, compared with $7.38 billion a
year earlier. Analysts polled by Thomson Reuters expected revenue
of $7.81 billion.
Analysts polled by Thomson Reuters expected per-share profit of
86 cents and revenue of $7.81 billion.
Gross margin rose to 45.6% from 45.1%.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
December 22, 2015 16:49 ET (21:49 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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