Nike Sales Surge, Boosted by China, Higher Prices

By Tess Stynes 

Nike Inc.'s sales rose a better-than-expected 5%, boosted in part by higher average selling prices and strength in its China business.

Shares of the Beaverton, Ore.-based company rose 5.3% to $120.85 in recent after-hours trading as per-share earnings and revenue surpassed expectations. Through the close Thursday, the stock had risen 42% over the past 12 months.

The world's top seller of sports and footwear has had a giant lead in the sports apparel sector, where in addition to competition from Germany-based rival Adidas AG, younger rivals such as Under Armour Inc. and Skechers USA Inc. have been moving in on its turf.

Nike has been benefiting from cultural trends that favor its products, including the rise of athletically styled footwear and clothes among consumers that aren't necessarily planning a workout.

For the period ended Aug. 31, revenue increased to $8.41 billion from $7.98 billion. Analysts polled by Thomson Reuters had projected revenue growth of 3% to $8.22 billion.

Nike reported a profit of $1.18 billion, or $1.34 a share, up from $962 million, or $1.09 a share, a year earlier. Analysts polled by Thomson Reuters had expected per-share profit of $1.19.

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(END) Dow Jones Newswires

September 24, 2015 16:41 ET (20:41 GMT)

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