Nike Shares Jump on Soaring Profits

The company's online sales rose 33% last quarter

   

Nike Shares Jump on Soaring Profits

Nike Shoes 300x199 Nike Shares Jump on Soaring ProfitsShares of Nike (NYSE:NKE) surged more than 11% in Friday morning trading after the company exceeded Wall Street’s expectations for quarterly earnings.

The athletic equipment and apparel maker posted a fiscal third-quarter profit of $866 million, up 55% from $560 million in the same period last year. EPS came in at 73 cents a share, topping analysts who were looking for 67 cents, the Associated Press noted.

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Quarterly sales climbed to $6.19 billion, up 9% from the prior year, and in line with analysts’ forecasts of $6.2 billion.

The company’s online sales soared 33% during the quarter. Company executives say they plan to expand its e-commerce business.

North American revenue jumped 18% during the quarter, while Chinese revenue sank 9%. Nike derives 40% of its revenue from the U.S. and Canada.

In December, Oregon Governor John Kitzhaber asked his state’s legislature to guarantee that state tax rules would remain unchanged if Nike committed to expand operations in Oregon, potentially adding 12,000 new jobs.


Article printed from InvestorPlace Media, http://investorplace.com/2013/03/nike-shares-jump-on-soaring-profits/.

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