Yesterday, Nike (NKE) reported its fiscal third-quarter numbers, and the best way to describe the results is to tweak the company’s own motto and say they ‘just did it.’ The sportswear giant said profit came in at $496 million, or $1.01 a share, from $244 million, or 50 cents a share, in the prior year. Revenue surged 7% to $4.7 billion in the quarter from $4.4 billion last year. The consensus Street estimate pegged Nike at 89 cents a share on revenue of $4.59 billion.
Not only did Nike just do it with top- and bottom-line earnings beats, the company also increased its gross margin to 46.2% from 43.9% a year ago. It also reported a 9% increase in worldwide futures orders for Nike brand athletic footwear and apparel scheduled for delivery from March through July.
Apparently, the Tiger Woods scandal failed to crimp Nike’s fiscal style, as this was the first full quarter the company’s had since its high-profile, philandering star fell from grace. Although the company has said little about what the ‘Tiger effect’ may be on its bottom line, I think the numbers speak for themselves. In fact, judging by the fiscal Q3 numbers, it could be that Nike actually got a bump in sales courtesy of the tremendous notoriety generated by the Woods scandal.
Whatever the reasons for the outstanding quarter, the bottom line is that Nike’s top- and bottom lines are very strong. And now that Tiger is making his return to golf in a few weeks at this year’s Masters Tournament, Nike could swing its way to an even more profitable fiscal fourth quarter. And, if the Street’s reaction to Wednesday’s numbers is any indication of what’s in store for Nike shares going forward, then things definitely look good. The stock was up over 3.5% and climbing midway through the after-hours trading session.
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