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.