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BEAVERTON, United States — Nike Inc., the world's largest sporting-goods company, reported third-quarter profit that topped analysts' estimates amid demand for footwear and equipment in North America.
Net income from continuing operations in the quarter ended Feb. 28 rose 16 percent to $662 million from $569 million a year earlier, Beaverton, Oregon-based Nike said today in a statement. Profit on that basis totaled 73 cents a share. Analysts projected 67 cents a share, the average of 20 estimates compiled by Bloomberg.
While sales have slowed in some overseas regions, Nike’s largest market of North America remains a strength, with revenue gaining 18 percent amid demand for running shoes. Sales in China fell for a third straight quarter, declining 10 percent.
Nike rose 8.6 percent to $58.21 at 4:28 p.m. in New York.
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Orders for the Nike brand from March to July, excluding currency exchange-rate changes, advanced 7 percent. Analysts projected a gain of 4.7 percent, the average of 7 estimates compiled by Bloomberg. A year ago orders surged 18 percent.
Nike has been working to improve its profitability amid higher costs for labor and materials. Last year, the company decided to sell money-losing Cole Haan, a fashion brand with its own chain of stores, and the soccer unit Umbro. Cole Haan has been sold to Apax Partners for $570 million and Iconix Brand Group Inc. bought Umbro for $225 million.
--By: Matt Townsend; with assistance from Courtney Dentch in New York. Editors: James Callan, Robin Ajello
