World Cup boost for Nike as quarterly growth rises 23pc
Nike, the world's largest sporting-goods maker, has posted first-quarter profit that topped analysts' estimates after the FIFA World Cup boosted sales.
The shares surged in late trading yesterday. Net income in the quarter ended August 31, rose 23pc to $962m (€757m) from $779m - or $1.09 a share, up from 86 cents - a year earlier, the company said.
The World Cup is the world's most-watched sporting event, and this year's tournament in Brazil boosted interest in Nike's football gear and apparel. US consumers have also been buying more athletic apparel and footwear for everyday use, not just when working out or playing sports.
The shares rose as much as 7.3pc to $85.58 yesterday in late trading in New York. Nike has under performed the market this year.
Orders for the Nike brand for delivery from September through January rose 14pc, excluding the effects of foreign-currency exchange-rate fluctuations.
The measure is closely watched because investors view it as a proxy for future sales.
In North America, Nike's largest market, orders rose 15pc, topping an estimate of 9.8pc.
Earnings per share will advance about 20pc this year, the company said on a conference call to discuss the results.
Analysts had projected a gain of about 14pc.