Nike Q1 profit falls on year-ago gain, sales grow
Nike Inc.'s profit fell 10 per cent in its fiscal first quarter as a special gain in the prior year did not recur, the company said on Wednesday. Sales rose, however, with help from international operations.
By Agencies |
PORTLAND/OREGON: Nike Inc.'s profit fell 10 per cent in its fiscal first quarter as a special gain in the prior year did not recur, the company said on Wednesday. Sales rose, however, with help from international operations.
The Beaverton, Oregon-based athletic shoe and apparel company said its net income decreased to $510.5 million, or $1.03 per share, from $569.7 million, or $1.12 per share, a year earlier. But the 2007 quarter included a special item that increased earnings per share by 20 cents. If adjusted for the benefit, net income would have grown 10 percent.
Revenue jumped 17 percent to $5.43 billion. Changes in currency exchange rates increased revenue by 7 percentage points during the quarter.
Analysts surveyed by Thomson Reuters, on average, had expected the company to earn 92 cents per share on sales of $5.19 billion.
Nike's biggest growth continued to be in overseas market, with revenue growth of 36 percent in the Asia-Pacific region. In the U.S., which is the company's largest market, revenue grew 8 percent to $1.8 billion for the quarter.
The company's future orders, which investors were watching for an indication of holiday sales, were up. Orders scheduled for delivery from September through January totaled $6.8 billion, 10 percent higher than for the same quarter of last year.
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Nike President and CEO Mark Parker said the results reflect the ``strength of our brands and our global business.'' Share of Nike, which had fallen 2.6 percent to close at $59.27 in the regular session, rose 5.5 percent to $62.37 in after-hours trading.
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