Nike Shares Jump on Soaring Profits

by Christopher Freeburn | March 22, 2013 10:48 am

Nike Shares Jump on Soaring Profits

Nike Shoes 300x199 Nike Shares Jump on Soaring Profits[1]Shares of Nike (NYSE:NKE[2]) surged more than 11% in Friday morning trading after the company exceeded Wall Street’s expectations for quarterly earnings[3].

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.

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[4] if Nike committed to expand operations in Oregon, potentially adding 12,000 new jobs.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/Nike-Shoes.jpg
  2. NKE: http://studio-5.financialcontent.com/investplace/quote?Symbol=NKE
  3. exceeded Wall Street’s expectations for quarterly earnings: http://SharesofNikesurgedmorethan9%inFridaymorningtradingafterthecompanyexceededWallStreet
  4. guarantee that state tax rules would remain unchanged: http://investorplace.com/2012/12/nike-expansion-could-mean-12000-more-jobs-for-one-state/

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