Nike's Earnings, Revenue Beat Views
December 20 2016 - 5:18PM
Dow Jones News
By Anne Steele
Nike Inc.'s earnings easily topped estimates in the latest
quarter as the world's largest sportswear maker reported continued
strength in its key North American business.
Shares, which have fallen 17% this year though Tuesday's close,
added back 3.1% after hours to $53.39.
Nike has been facing increasing competitive pressures from
rivals Under Armour Inc. and Adidas AG in its domestic market. But
in the November period, Nike's North American sales rose 2.9% to
$3.65 billion.
Over all, Nike reported a profit of $842 million, or 50 cents a
share, up from $785 million, or 45 cents a share, a year earlier.
Analysts polled by Thomson Reuters had expected per-share profit of
43 cents.
Revenue increased 6.4% to $8.18 billion, just topping the $8.09
billion analysts were expecting. Excluding currency impacts, the
company said, the top line improved 8%.
Gross margin shrank 1.4 percentage points to 44.2%, as higher
average selling prices were more than offset by higher product
costs, unfavorable changes in foreign exchange rates and higher
off-price sales.
The company said it would report futures orders -- closely
watched by investors as a benchmark for demand for Nike products --
as guidance on a conference call Tuesday evening. Nike is working
to sell more direct to consumer and is hoping to wean partners and
the Street from evaluating its business entirely by wholesale.
(END) Dow Jones Newswires
December 20, 2016 17:03 ET (22:03 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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