Nike Sales Surge, Boosted by China, Higher Prices
September 24 2015 - 4:56PM
Dow Jones News
By Tess Stynes
Nike Inc.'s sales rose a better-than-expected 5%, boosted in
part by higher average selling prices and strength in its China
business.
Shares of the Beaverton, Ore.-based company rose 5.3% to $120.85
in recent after-hours trading as per-share earnings and revenue
surpassed expectations. Through the close Thursday, the stock had
risen 42% over the past 12 months.
The world's top seller of sports and footwear has had a giant
lead in the sports apparel sector, where in addition to competition
from Germany-based rival Adidas AG, younger rivals such as Under
Armour Inc. and Skechers USA Inc. have been moving in on its
turf.
Nike has been benefiting from cultural trends that favor its
products, including the rise of athletically styled footwear and
clothes among consumers that aren't necessarily planning a
workout.
For the period ended Aug. 31, revenue increased to $8.41 billion
from $7.98 billion. Analysts polled by Thomson Reuters had
projected revenue growth of 3% to $8.22 billion.
Nike reported a profit of $1.18 billion, or $1.34 a share, up
from $962 million, or $1.09 a share, a year earlier. Analysts
polled by Thomson Reuters had expected per-share profit of
$1.19.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 24, 2015 16:41 ET (20:41 GMT)
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