Nike fiscal 2nd-quarter profit jumps 40 percent

Published on NewsOK Modified: December 19, 2013 at 4:39 pm •  Published: December 19, 2013
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BEAVERTON, Ore. (AP) — Nike's fiscal second-quarter net income jumped 40 percent, helped by higher average selling prices and an increase in revenue around the world.

Profit topped analysts' expectations, though revenue came in slightly short. Shares rose 39 cents in aftermarket trading, having closed at $78.26 before the report. The stock is up 52 percent year to date, and hit an all-time high of $80.26 last week.

The world's largest athletic goods maker said Nike brand sales grew across every product type and region. Sales of Converse brand items were especially strong in North America, Britain and China markets. Profit margins were helped by Nike's shift toward more profitable products and businesses, higher average prices and an easing in the cost of raw materials.

Nike is readying for three major athletic events in 2014, the Super Bowl, World Cup and Olympics. In a call with analysts Thursday, CEO Mark Parker said Nike has introduced its Brazilian and French World Cup uniforms, known as "kits," that are using new technology to be 16 percent lighter than the uniforms made for the 2012 Euro Championships. They're made of recycled polyester that use the equivalent of 18 recycled water bottles in every uniform.

Western Europe revenue rose 18 percent to $1.07 billion during the quarter, with future orders up 26 percent in that region. China, which has seen slowing growth, showed signs of improvement, and Parker said he was "very encouraged" by revenue growth of 8 percent to $629 million there.

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