Nike beats market expectations despite fears of dollar strength
NIKE’S quarterly profit beat market estimates as the world’s largest sportswear maker sold more higher margin shoes and clothes but the company warned Wall Street that the stronger dollar would take a toll on its current quarter.
Investors, however, ignored the warning, sending its shares up 4.5 per cent to $102.75 in heavy after-hours trading yesterday.
“This is another just rock solid quarter. It is really impressive for a company of this size,” Edward Jones analyst Brian Yarbrough said.
Nike said it expects sales growth in this quarter to be in the “low double-digits”, adjusting for currency fluctuations.
The company’s net income rose 16 per cent to $791m (£536.2m), in the third quarter ending 28 February. Gross margins expanded 1.4 percentage point to 45.9 per cent and total revenue increased seven per cent to $7.46bn.