Dec 21, 2011
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Brand power helps Nike beat estimates

Dec 21, 2011

Nike Inc's quarterly results beat Wall Street estimates, as its branded merchandise sold well across the world despite higher prices.

Nike by Andy Warhol, Photo: Corbis Images

Worldwide futures orders for the Nike brand, a closely watched measure of demand in coming months, grew 13 percent to $8.9 billion at the end of the quarter.

For the second quarter ended November 30, the world's biggest sports clothing maker earned $469 million, or $1 a share, compared with $457 million, or 94 cents a share, last year.

Revenue rose 18 percent to $5.73 billion.

Analysts, on average, were expecting earnings of 97 cents a share, on revenue of $5.63 billion, according to Thomson Reuters I/B/E/S.

Excluding foreign exchange fluctuations, revenue for the Nike brand rose 18 percent with growth in all markets except for Japan, and in all key categories except Action Sports, the company said in a statement.

The company, which also owns brands like Converse, Cole Haan, Umbro and Hurley, said revenues from these segments increased 5 percent.

Shares of the Beaverton, Oregon company were up at $94.67 in after-market trade on Tuesday. They closed at $93.63 on the New York Stock Exchange.

(Nivedita Bhattacharjee in Bangalore; Editing by Unnikrishnan Nair)

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