Nike races past forecasts as its sales rocket

City A.M. Reporter
NIKE enjoyed big gains in sales in North America and Europe last quarter and benefited from fewer markdowns, helping the maker of sports clothes and shoes report a stronger-than-expected quarterly profit.

Total revenue rose 7.7 per cent to $6.97bn (£4.3bn), and global orders for delivery later this year, which the company calls “futures orders”, rose 10 per cent excluding currency impact, suggesting Nike’s hot streak will continue.

Nike shares rose 5.7 per cent to $74.35 in after-hours trading. Including those gains, shares are up 13.7 per cent since the announcement earlier this month that Nike would join the Dow Jones industrial average.

Nike revenue in North America rose nine per cent, and in western Europe, where many retailers have struggled with a pullback by consumers, sales grew eight per cent. The company earned $780m, or 86 cents a share, in its fiscal first quarter, ended 31 August, compared with $567m, or 63 cents a share, last year.

Analysts expected a profit of 78 cents per share, according to Thomson Reuters.