Nike profit rises as sales of higher-margin products jump
Sportswear giant Nike yesterday posted better-than-expected earnings and revenue, sending its share price up.
On the back of selling more high-margin basketball shoes and clothing, Nike net income rose to $1.18bn (£774m), or $1.34 per share, in the first quarter ended 31 August, from $962m, or $1.09 per share, a year earlier. Revenue rose 5.4 per cent to $8.41bn.
After the announcement, the company’s shares jumped more than five per cent in after-hours trading.
“Fiscal 2016 is off to a great start,” Mark Parker, Nike’s president and chief executive, said in the company’s earnings release. Our relentless pace of growth is driven by our proven strategy of putting the consumer first, obsessing innovation in everything we do and leveraging our powerful portfolio. We’re well-positioned to continue to deliver long-term growth that is both sustainable and profitable.”
Nike also reported strong future orders numbers, including 22 per cent growth in China – or 27 per cent excluding currency changes.