Nike quarterly earnings beat Wall Street estimates as the world's largest athletic footwear and apparel company reported robust US sales and orders growth, sending its shares up 5%.
Slowing growth in the US, the company's largest and most mature market, has concerned Wall Street in recent quarters, but investors took a 3% rise in future US orders as good news in a bad economy.
Nike also said gross profit margins rose to 47.2% of sales in the quarter from 44.8% a year earlier, helped by higher prices in its home market.
''I think it's a great sign that they can raise prices in the US,'' said McAdams Wright Ragen's Sara Hasan.
Net profit fell to $US510.5 million, or $US1.03 per share, in the fiscal first quarter ended August 31, from $US569.7 million, or $US1.12 per share, a year earlier. Revenue rose 17% to $US5.4 billion in the quarter.
A $US105.4 million tax benefit a year earlier boosted year-ago earnings by 20 cents per share. Excluding that one- time gain, Nike said net profit would have grown 10%.
Wall Street, on average, had been expecting earnings of 92 cents per share on revenue of $US5.2 billion, according to Reuters Estimates.
The company posted an 8% sales rise in the US during the quarter, but the 3% rise in future orders was particularly impressive because it came on top of 11.5% growth in the year-ago quarter, said Susquehanna Financial analyst John Shanley.
''Investors are going to be very pleased,'' he said.
Revenues rose 20% in Europe - with 15%age points of that gain coming from the weaker dollar - and 36% in Asia, boosted 10 percentage points by the currency exchange rates.
Global orders for delivery of shoes and apparel from now until January rose 10%, with gains of 4% and 27%, respectively, in Europe and Asia.
That total gain was well above the 5% rise expected by at least one analyst, McAdams Wright Ragen's Hasan.
A weaker dollar has helped Beaverton, Oregon-based Nike in its international markets, as well as robust growth in Asia, especially in China, where Nike sales were energized by the recent Olympics.
Nike shares, which are up 2.5% this year, are valued at nearly 16 times 2009 projected earnings, at a premium to rival Adidas AG at 10 times forward-looking earnings.
Nike shares rose 5% to $US62.21 in extended trading after closing at $US59.27 on the New York Stock Exchange.
Slowing growth in the US, the company's largest and most mature market, has concerned Wall Street in recent quarters, but investors took a 3% rise in future US orders as good news in a bad economy.
Nike also said gross profit margins rose to 47.2% of sales in the quarter from 44.8% a year earlier, helped by higher prices in its home market.
''I think it's a great sign that they can raise prices in the US,'' said McAdams Wright Ragen's Sara Hasan.
Net profit fell to $US510.5 million, or $US1.03 per share, in the fiscal first quarter ended August 31, from $US569.7 million, or $US1.12 per share, a year earlier. Revenue rose 17% to $US5.4 billion in the quarter.
A $US105.4 million tax benefit a year earlier boosted year-ago earnings by 20 cents per share. Excluding that one- time gain, Nike said net profit would have grown 10%.
Wall Street, on average, had been expecting earnings of 92 cents per share on revenue of $US5.2 billion, according to Reuters Estimates.
The company posted an 8% sales rise in the US during the quarter, but the 3% rise in future orders was particularly impressive because it came on top of 11.5% growth in the year-ago quarter, said Susquehanna Financial analyst John Shanley.
''Investors are going to be very pleased,'' he said.
Revenues rose 20% in Europe - with 15%age points of that gain coming from the weaker dollar - and 36% in Asia, boosted 10 percentage points by the currency exchange rates.
Global orders for delivery of shoes and apparel from now until January rose 10%, with gains of 4% and 27%, respectively, in Europe and Asia.
That total gain was well above the 5% rise expected by at least one analyst, McAdams Wright Ragen's Hasan.
A weaker dollar has helped Beaverton, Oregon-based Nike in its international markets, as well as robust growth in Asia, especially in China, where Nike sales were energized by the recent Olympics.
Nike shares, which are up 2.5% this year, are valued at nearly 16 times 2009 projected earnings, at a premium to rival Adidas AG at 10 times forward-looking earnings.
Nike shares rose 5% to $US62.21 in extended trading after closing at $US59.27 on the New York Stock Exchange.
