Nike sales rise 4.1% as demand jumps in North America, China

Nike, the world's largest footwear maker, reported a 4.1 per cent rise in quarterly revenue as demand rose for its shoes and apparel in North America and China.

The company’s shares strthe top performing year-to-date Dow component.

The Nike brand’s orders for delivery December through April, a gauge of demand the company calls “futures orders”, rose 20 per cent, excluding currency, as of November 30th.

Analysts on average had expected futures orders growth of 13.6 per cent, according to Consensus Metrix.

Futures orders in Greater China - a fast-growing market - jumped 34 per cent.

New footwear launches in the basketball, running and sports categories are helping Nike draw customers toward higher-priced products, while the “athleisure” trend is driving sales in the athletic apparel sector.

Revenue from North America, Nike’s largest market, rose 9.4 per cent in the quarter ended November 30th. Footwear sales in the region rose 12.3 per cent to $2.16 billion.

Sales in Greater China rose 24 per cent, helped by overhauled stores and greater online traffic.

Nike said net income jumped 20 per cent to $785 million, or 90 cents per share.

Revenue rose to $7.69 billion from $7.38 billion.

Analysts on average had expected earnings of 86 cents per share and revenue of $7.81 billion.

Reuters