Nike's Earnings, Revenue Beat Views

By Anne Steele 

Nike Inc.'s earnings easily topped estimates in the latest quarter as the world's largest sportswear maker reported continued strength in its key North American business.

Shares, which have fallen 17% this year though Tuesday's close, added back 3.1% after hours to $53.39.

Nike has been facing increasing competitive pressures from rivals Under Armour Inc. and Adidas AG in its domestic market. But in the November period, Nike's North American sales rose 2.9% to $3.65 billion.

Over all, Nike reported a profit of $842 million, or 50 cents a share, up from $785 million, or 45 cents a share, a year earlier. Analysts polled by Thomson Reuters had expected per-share profit of 43 cents.

Revenue increased 6.4% to $8.18 billion, just topping the $8.09 billion analysts were expecting. Excluding currency impacts, the company said, the top line improved 8%.

Gross margin shrank 1.4 percentage points to 44.2%, as higher average selling prices were more than offset by higher product costs, unfavorable changes in foreign exchange rates and higher off-price sales.

The company said it would report futures orders -- closely watched by investors as a benchmark for demand for Nike products -- as guidance on a conference call Tuesday evening. Nike is working to sell more direct to consumer and is hoping to wean partners and the Street from evaluating its business entirely by wholesale.

(END) Dow Jones Newswires

December 20, 2016 17:03 ET (22:03 GMT)

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