Nike Beats Q4 Estimates (NKE)
Sports shoes and athletic accessories maker, Nike Inc. (NYSE: NKE) said on Thursday that fiscal fourth quarter profit climbed 22%, aided by wider gross margin, improved revenue and lower income tax expenses.
Both earnings and revenue exceeded analysts’ consensus estimate.
Sales in North America region, which accounts for the bulk of top line growth, improved in the recently concluded quarter even as other international markets have been showing signs of weakness in the recent past.
Future orders, jumped 12% in North America, rose 3% in Greater China, edged up 2% in Europe and climbed 12% in emerging markets.
For the quarter ended May 31, Nike reported a profit of $668 million compared to a net income of $549 million, in the year-earlier quarter.
Income from continuing operations jumped to $696 million or 76 cents a share from $559 million or 60 cents a share, in the year earlier quarter.
Analysts’ consensus estimate was for earnings of 74 cents share, according to a data compiled by Thomson Reuters.
Revenue rose 7% to $6.70 billion from $6.24 billion, in the same period of last year. Adjusting the impact of foreign exchange fluctuations, revenue increased 9%. Analysts’ consensus estimate was for revenue of $6.64 billion.
Revenue, jumped 12% from North America operations to $2.7 billion, fell 1% to $1 billion in Western Europe while it climbed 9% to $361 million from Eastern European markets.
Revenue from Japan slumped 11% to $214, improved marginally to $669 million from $667 million in Greater China while in emerging markets it jumped 10% to $960 million.
Revenue from other business segments, which include: Hurley International LLC, Nike Golf and Converse Inc), climbed 10% to $732 million in the fiscal fourth quarter.
Gross margin widened to 43.9% from 42.8% as input cost fell and selling price rose.