Nike Revenue and Profit Rise

By Tess Stynes 

Nike Inc. said its revenue rose 7.7% in the latest quarter as the world's largest sportswear maker reported stronger sales in its North American business.

For the period ended Aug. 31, the Beaverton, Ore., company reported revenue increased to $9.06 billion from $8.41 billion a year earlier. Analysts polled by Thomson Reuters had expected revenue of $8.87 billion. Excluding currency impacts, the top line improved 10%.

Nike said its futures orders, which reflect products scheduled for delivery from September through January of next year, rose 5% on a global basis, below the increase of 9% a year earlier and the 8% growth logged for the previous quarter. Futures orders are closely watched by investors as a benchmark for demand for Nike products.

Excluding currency effects, Nike's future orders increased 7%.

Shares of the company fell 4.5% to $52.85 in after-hours trading.

Nike has been facing increasing competitive pressures from rivals Under Armour Inc. and Adidas AG in its domestic market, which weighed on its revenue in North America in the previous quarter ended in May. In the latest period, Nike's North American sales grew 6.1% to $4.03 billion.

Over all, Nike reported a profit of $1.25 billion, or 73 cents a share, up from $1.18 billion, or 67 cents a share, a year earlier. Analysts expected per-share profit of 56 cents.

Gross margin fell to 45.5% from 47.5%.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

September 27, 2016 16:55 ET (20:55 GMT)

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