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World Cup Boosts Nike Sales

Nike Inc., the world’s largest sporting-goods maker, posted first-quarter profit that topped analysts’ estimates after the FIFA World Cup soccer tournament boosted sales.
Nike football kit for the Dutch national team | Source: Nike
By
  • Bloomberg

OREGON, United States — Nike Inc., the world's largest sporting-goods maker, posted first-quarter profit that topped analysts' estimates after the FIFA World Cup soccer tournament boosted sales.

Net income in the quarter ended Aug. 31 rose 23 percent to $962 million, or $1.09 a share, from $779 million, or 86 cents, a year earlier, the Beaverton, Oregon-based company said today in a statement. The average of 25 analysts’ estimates compiled by Bloomberg was 88 cents.

The World Cup, the world’s most-watched sporting event, took place in Brazil during the quarter, boosting interest in Nike’s soccer gear and apparel. U.S. consumers also have been buying more athletic apparel and footwear for everyday use, not just when working out or playing sports.

Orders for the Nike brand for delivery from September through January rose 14 percent, excluding the effects of foreign-currency exchange-rate fluctuations. Analysts estimated a gain of 10 percent gain, on average, according to Consensus Metrix, a researcher owned by Wayne, New Jersey-based Kaul Advisory Group. The measure is closely watched because investors view it as a proxy for future sales.

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The shares rose 5.1 percent to $83.85 at 4:18 p.m. in late trading in New York. Nike had gained 1.4 percent this year through the close of regular trading, compared with a 6.4 percent increase for the Standard & Poor’s 500 Index.

By Matt Townsend; editors: Nick Turner, Kevin Orland.

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