The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
BEAVERTON, United States — Nike Inc., the world's largest sporting- goods maker, posted third-quarter profit that topped analysts' estimates, helped by demand in North America.
Net income in the quarter ended Feb. 28 rose 16 percent to $791 million, or 89 cents a share, from $682 million, or 75 cents, a year earlier, the Beaverton, Oregon-based company said Thursday in a statement. The average of 27 analysts’ estimates compiled by Bloomberg was 84 cents.
Nike has been on a roll after revamping its struggling China division, and benefiting from the trend of consumers wearing fashionable athletic wear and shoes as everyday items. That’s helped the company generate growth in mature markets such as North America, where sales increased 6 percent to $3.25 billion last quarter.
The gains in North America, Nike’s largest market, will continue with orders for delivery from March through July rising 15 percent, excluding the effects of foreign-currency exchange- rate fluctuations. Analysts estimated an 11.6 percent gain, on average, according to researcher Consensus Metrix.
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Total orders rose 11 percent, topping estimates of 9.9 percent. The measure is closely watched because investors view it as a proxy for future sales.
The shares rose 0.7 percent to $98.99 at 4:21 p.m. in New York. The stock had gained 2.3 percent this year through the close of regular trading.
Nike is also taking advantage of missteps at Adidas AG, the No. 2 supplier of sports gear. After years of declining market share in several categories, the Herzogenaurach, Germany-based company is looking for a replacement for Chief Executive Officer Herbert Hainer. Next week, the company is expected to announce a turnaround plan.
By Matt Townsend. Editors: Nick Turner, James Callan, Kevin Orland.
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