Nike profits top analyst targets after surge in shoe sales
Demand for running and basketball footwear drives north American revenues
North American sales up 9.4% to $3.14bn. Photograph: Lucy Nicholson/Reuters
Nike, the world’s largest sporting-goods company, posted fiscal first-quarter profit that topped analysts’ estimates after demand for running and basketball shoes helped north American sales.
Net income in the quarter to August 31st rose 38 per cent to $780 million from $567 million a year earlier, the company said. Earnings per share from continuing operations were 86 US cents, compared to estimates averaging 78 cents.
“A number of things are firing on all cylinders,” said Paul Swinand, a Morningstar analyst in Chicago. “Almost everything across the board is strong.”
Sales rose 7.7 per cent to $6.97 billion, topping analysts’ $6.96 billion average estimate. Sales in North America, Nike’s largest market, rose 9.4 percent to $3.14 billion.