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Nike sales rise 4.1 percent as demand jumps in North America

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Reuters
Last Updated : Dec 23 2015 | 3:28 AM IST

(Reuters) - Nike Inc , the world's largest footwear maker, reported a 4.1 percent rise in quarterly revenue as demand rose for its shoes and apparel in North America.

The company's shares, already the top performing year-to-date Dow component, rose 3 percent to $135.80 in extended trading on Tuesday.

The Nike brand's orders for delivery December through April, a gauge of demand the company calls "futures orders", rose 20 percent, excluding currency, as of Nov. 30.

Analysts on average had expected futures orders growth of 13.6 percent, according to Consensus Metrix.

Futures orders in Greater China - a fast-growing market - jumped 34 percent.

New footwear launches in the basketball, running and sports categories are helping Nike draw customers towards higher-priced products, while the "athleisure" trend is driving sales in the athletic apparel sector.

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Revenue from North America, Nike's largest market, rose 9.4 percent in the quarter ended Nov. 30. Footwear sales in the region rose 12.3 percent to $2.16 billion.

Sales in Greater China rose 24 percent, helped by overhauled stores and greater online traffic.

Nike said net income jumped 20 percent to $785 million, or 90 cents per share.

Revenue rose to $7.69 billion from $7.38 billion.

Analysts on average had expected earnings of 86 cents per share and revenue of $7.81 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Ramkumar Iyer in Bengaluru)

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First Published: Dec 23 2015 | 3:13 AM IST

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