Nike Revenue and Profit Rise
September 27 2016 - 5:10PM
Dow Jones News
By Tess Stynes
Nike Inc. said its revenue rose 7.7% in the latest quarter as
the world's largest sportswear maker reported stronger sales in its
North American business.
For the period ended Aug. 31, the Beaverton, Ore., company
reported revenue increased to $9.06 billion from $8.41 billion a
year earlier. Analysts polled by Thomson Reuters had expected
revenue of $8.87 billion. Excluding currency impacts, the top line
improved 10%.
Nike said its futures orders, which reflect products scheduled
for delivery from September through January of next year, rose 5%
on a global basis, below the increase of 9% a year earlier and the
8% growth logged for the previous quarter. Futures orders are
closely watched by investors as a benchmark for demand for Nike
products.
Excluding currency effects, Nike's future orders increased
7%.
Shares of the company fell 4.5% to $52.85 in after-hours
trading.
Nike has been facing increasing competitive pressures from
rivals Under Armour Inc. and Adidas AG in its domestic market,
which weighed on its revenue in North America in the previous
quarter ended in May. In the latest period, Nike's North American
sales grew 6.1% to $4.03 billion.
Over all, Nike reported a profit of $1.25 billion, or 73 cents a
share, up from $1.18 billion, or 67 cents a share, a year earlier.
Analysts expected per-share profit of 56 cents.
Gross margin fell to 45.5% from 47.5%.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
September 27, 2016 16:55 ET (20:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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