Thursday, December 20, 2007

Nike posts 10 percent rise in earnings

Nike Inc.'s second-quarter profit grew 10 percent, largely fueled by international sales growth, the athletic shoe and clothing company said Wednesday.

Nike reported second-quarter net income of $359.4 million, or 71 cents per share, up from $325.6 million, or 64 cents, in the same period a year earlier.

The results exceeded analyst expectations.Shares of the Beaverton-based company rose $1.71, or nearly 3 percent, to $63.80 in after-hours trade Wednesday.

Quarterly revenue grew 14 percent to $4.3 billion for the quarter ending Nov. 30. Changes in currency accounted for 4 percentage points of that growth.

The company benefitted from a weaker dollar, which makes exports less expensive and more competitive abroad.

The company registered its largest revenue growth overseas. Revenue grew 19 percent in the Americas region, with Europe following closely at 18 percent, while and the Asia-Pacific regions jumped 17 percent.

Analysts said the growth in international business was much stronger in Asia and Europe than expected.

"With the continued growth in China and some of the markets they hadn't talked about in the past, like Turkey and Russia, those are all positive indications," said John Shanley with Susquehanna Financial Group.

No comments: