Nike net income rose 38pc, boosted by good sales around the world, though there was a slow down in China. Photo / APN
Nike net income rose 38pc, boosted by good sales around the world, though there was a slow down in China. Photo / APN
Nike's first-quarter net income rose 38 percent, boosted by strong demand for its namesake brand and revenue growth in every region except China.
Results beat expectations and the company's shares rose 5.8 percent in aftermarket trading.
The athletic goods maker has been dealing with Europe's fluctuating economy and a slowdownin growth in China. The company has been working to reduce its inventory in China and reworking its offerings there to adapt to the changing tastes of Chinese consumers. Meanwhile, it has been enjoying strong demand in North America, where it has been selling off less profitable brands like Umbro to focus on core brands like Nike.
Nike said on Thursday its net income for the three months that ended on August 31 rose to $780 million, or 86 cents per share. That compares with net income of $567 million, or 63 cents per share a year ago. That beat analyst expectations of 78 cents per share, according to research firm FactSet.
Net income was helped by easing costs for raw materials and selling fewer items at a discount, partly offset by higher labor costs and the stronger dollar.
The company, based in Beaverton, Oregon, says revenue rose 8 percent to $6.97 billion. Analysts expected revenue of $6.96 billion. Nike brand revenue rose 7 percent to $6.5 billion and was higher in running, basketball, soccer and men's training. That offset a slight decline in sportswear. Converse revenue rose 16 percent to $494 million.
Revenue rose in all regions except China, where revenue fell 3 percent to $574 million. Orders for goods scheduled to be delivered between September and January 2014 rose 8 percent.
Shares rose $4.05 to $74.39 in aftermarket trading, after closing the regular trading day up $1.42, or 2 percent, at $70.34. The stock has traded between $44.83 and $70.56 over the past year.
