Nike shares jump 6.2% on strong home demand

Nike footwear Nike's home market was one of the bright spots for the company

Sportswear giant Nike shares closed with a sharp gain on Friday after it reported a strong rise in demand in its home North American market.

Shares rose 6.2% after the company's third quarter figures suggested steady demand for its products around the world.

Orders for delivery of its shoes and clothing for the coming months were up 14% in the home market.

Worldwide orders for the December-April period were up 6%,

Nike's chief executive, Mark Parker, said the level of home demand was a welcome boost: "In North America, we created great momentum. This is somewhat counterintuitive to some, given this market size and assumed maturity.

"But I see tremendous growth potential in North America."

The company's past reported orders were lower than expected.

Profit margins were down by 30 basis points on the second quarter, but Nike said it expects margins to grow in the fourth quarter.

The company made profits of $384m in the third quarter, 14% higher than analysts were expecting with revenue up 7%.

Despite the positive figure, Nike's global performance was weak in certain areas, such as China, where it had excess stock and faces strong competition from local brands.

However, the picture there is improving with inventory levels rising 9% in the quarter, a far smaller build-up of excess stock than the 35% it saw in the same quarter a year ago.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

Elsewhere on the BBC

  • GeoguessrWhere in the world?

    Think you’re a geography expert? Test your knowledge with BBC Travel’s Geoguessr

Programmes

  • Suspension bridge connecting mountain peaksThe Travel Show Watch

    Must-see global events including walking the first suspension bridge to connect mountain peaks

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.