Nike Profit Tops Estimates on Emerging Market Strength
For the three months ended May 31, Nike reported net income of $521.9 million, or $1.06 a share, up from $341.4 million, or 70 cents, booked in last year's fourth quarter. Analysts, on average, forecast earnings of $1.05 a share, according to data from Thomson Reuters.
Revenue increased 8% to $5.08 billion from $4.71 billion a year ago, coming up short of Wall Street's outlook for $5.14 billion in sales. More full-priced selling allowed gross margin, or the difference between sales and cost of goods sold, to expand by 4 percentage points. Nike ended the quarter with a 13% reduction in year-over-year inventories.
Worldwide orders for future delivery, a closely watched measure of demand, rose 7%, the Beaverton, Ore., company said. Shares in Nike closed almost unchanged ahead the earnings release, adding 6 cents, or less than 0.1%, to $72.52.