DOW JONES NEWSWIRES Nike Inc.'s (NKE) fiscal third-quarter earnings rose 7.1% as the maker of athletic footwear and apparel reported that sales improved in all its geographic markets except Japan. Nike, one of the world's largest sporting-goods makers, has posted improving results for more than a year. But as sales have jumped in North America, as well as in China and emerging markets, product-cost pressures have continued to hurt margins. In the latest period, gross margin fell to 43.8% from 45.8%, mostly on higher costs, which offset the benefits of price increases. It was the fifth consecutive quarter of margin declines for the company. For the quarter ended Feb. 29, Nike reported a profit of $560 million, or $1.20 a share, up from $523 million, or $1.10 a share, a year earlier. Revenue increased 15% to $5.8 billion. Analysts polled by Thomson Reuters projected earnings of $1.17 a share on revenue of $5.82 billion. In North America, Nike's largest market, sales rose 15% in the latest quarter, excluding currency changes. Inventories increased 32% from a year earlier, mostly owing to product input costs and changes in product mix. Nike shares added 1.1% to $112.35 in after-hours trading, surpassing its record high close of $112.13 on Monday. Through the close Thursday, the stock is up by nearly half over the past year. -By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com
