Nike shares jump as earnings beat forecasts

An athlete wears a pair of Nike shoes Nike said it was working hard to capture China's growth potential

Related Stories

Nike's quarterly profits have beaten analysts' forecasts as a recovery in US sales and lower material costs helped offset continued weakness in China.

The world's largest athletic shoe and clothing company posted third-quarter net income of $662m, against $569m for the three months last year.

The news saw Nike shares jump 8% in after hours trading on Wall Street.

"The US business continues to be just phenomenal," said Morningstar analyst Paul Swinand.

Revenue increased 9% to $6.2bn (£4bn), with the US accounting for $2.55bn, up 18% on the previous quarter. Revenue from China was down 9% to $635m.

However, Nike said in a statement that future delivery orders from China for the next quarter are strong. "For real long-term growth to be solid, it has got to come from China and emerging markets," Mr Swinand said.

In a conference call, Nike chief executive Mark Parker said the company was seeing progress in China, but "we still have more to do before we can capture its long-term growth potential".

Revenue from online operations rose 33% in the quarter, but Mr Parker said there was much more to do. "It's a pretty big gap between where e-commerce is today and where we can take it," he said.

More on This Story

Related Stories

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

More Business stories

RSS

Features & Analysis

  • Ben BradleeMan of steel

    Remembering the swashbuckling Watergate editor Ben Bradlee


  • Tupperware boxes in fridgePast its prime

    How safe is it to eat food when it starts to go mouldy?


  • Championship banners for the town high school American football team hang from a wall in Sayreville, NJ'It's rape'

    High school football hazing charges stun small town


  • Muscat (1811)1,001 knights

    Tales from the days when British diplomats ran the Gulf


Elsewhere on the BBC

  • FutureThe future is now

    Get the latest updates and biggest ideas from BBC Future’s World-Changing Ideas Summit

Programmes

  • St John's, CanadaThe Travel Show Watch

    It’s a ships’ symphony – listen to these freighters in Canada play music with their horns

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.