Nike says strong global demand for its athletic goods has helped third-quarter net income beat Wall Street expectations as it readies for the upcoming World Cup in Brazil.
Nike said results were hurt by the stronger US dollar during the quarter. That can affect US companies that sell goods overseas when they translate foreign income back into US currency. Nike is also dealing with higher costs for raw materials like chemicals and leather as well as labour.
But the company got a boost from big revenue gains, particularly in Europe. Higher prices helped offset discounts in some regions to clear excess merchandise.
Earnings from continuing operations rose three per cent, to $US685 million ($A759.38 million), or 76 US cents per share, in the three months that ended on February 28. Analysts expected 72 US cents per share, according to FactSet.
The year before, profit came to $US662 million, or 73 US cents per share. The Cole Haan and Umbro brands, which were sold in February 2013, added another $US204 million in profit to last year’s period.
Revenue rose 13 per cent to $US6.97 billion, beating analysts’ expectation of $US6.81 billion. Revenue rose 12 per cent in North America, its largest market, to $US3.07 billion. In Western Europe, revenue rose 22 per cent to $US1.29 billion and in China, revenue rose nine per cent to $US697 million.
The Beaverton, Oregan-based company on Thursday said that orders scheduled to be delivered between March and July rose 12 per cent to $US10.9 billion. That includes a 33 per cent jump in Western Europe, where the World Cup is popular.
Shares rose 44 US cents to $US79.71 in aftermarket trading after closing the day up 12 UScents at $US79.27.