Nike Reports Sales Gain Despite Weak Growth in North America
June 29 2017 - 5:37PM
Dow Jones News
By Maria Armental
Nike Inc. said Thursday that strong sales overseas helped fuel
growth in its fourth-quarter profit despite higher costs and tepid
gains in North America.
The world's largest sportswear company reported that revenue
rose 5% to $8.7 billion in its latest quarter, largely driven by
gains in China and emerging markets. Sales in North America --
Nike's largest market -- totaled $3.76 billion in the quarter, but
that fell short of the $3.8 billion expected from analysts surveyed
by FactSet.
Shares, up 4.6% so far this year, rose 2.7% to $54.60 in
after-hours trading.
On Thursday, Nike Chief Executive Mark Parker said in prepared
remarks that the current year would be big as it directs "even more
firepower" to its revamped operations. The Beaverton, Ore., company
said this month it would eliminate more than 1,000 jobs, roughly 2%
of its global workforce, step up online offerings and sell directly
on Amazon.com Inc.'s website.
Over all, fourth-quarter profit improved to $1.01 billion, or 60
cents a share, from $846 million, or 49 cents a share, a year
earlier. Revenue rose 5% to $8.68 billion.
Analysts had projected $844 million, or 50 cents a share, in
profit on $8.63 billion in sales.
Gross margin narrowed to 44.1% from 45.9% a year earlier.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
June 29, 2017 17:22 ET (21:22 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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