Nike Profit Rises 9% on Emerging Markets, Revenue Lags Estimates
Nike Inc.'s (NKE) fiscal first-quarter profit rose 9% as a surge in emerging-market sales, less inventory and fewer discount sales offset the negative effect of foreign-exchange rate changes. Shares fell in extended trading after the company's sales lagged analyst estimates.
Net income for the quarter ended Aug. 31 was $559 million, or $1.14 a share, up from $513 million, or $1.04, a year earlier, the world's biggest athletic-shoe maker said in a statement. Revenue increased 7.8% to $5.18 billion.
Nike boosted sales in emerging markets by 30% from a year earlier while increasing sales in China by 11%. The company also expanded gross margin, or the difference between sales and cost of goods sold, to 47% of sales from 46.2% partly by holding fewer close-out sales. Nike also cut inventory by 3% from a year earlier.
Worldwide orders for future delivery, a closely watched measure of demand, rose 10% from a year-earlier, the Beaverton, Ore.-based company said.
Still, shares fell after the company's revenue lagged the $5.22 billion in sales forecast by analysts in a Thomson Reuters poll. Nike stock declined 3.4% to $77.50 at about 4:40 p.m. Eastern time in extended trading.