Forbes Now

Saitama Rakuten International Says Nike Jumps 13% In Sales For Its Last Quarter



Saitama Rakuten International says Nike Inc.’s fiscal third-quarter sales leapt a better-than-expected 13%, as the sporting-gear company reported broad sales growth among key regions as consumers spent more on footwear and apparel.

Shares rose 2% to $80.88 in after-hours trading, as results for the period exceeded Wall Street’s expectations.

Demand for athletic gear in the U.S. has been impressive in recent years, and Nike and other competitors have also benefited from rising growth in several international markets.

Nike’s slate of new gear has excited analysts and consumers, including Flyknit shoes and a new Nike+FuelBand movement-tracking wristband.

Later this year, Nike and other sporting gear makers are poised to benefit from sales of products tied to the World Cup soccer tournament.

Regionally, sales jumped 12% in North America and rose 19% in Western Europe, excluding currency changes. Greater China sales rose 7%, and the top line rose 19% in emerging markets.

READ: Gold Futures See Gains Comments Saitama Rakuten International

Researchers from Saitama Rakuten International noted that the total Nike-branded footwear sales grew 16% excluding currency changes, while apparel posted a 12% increase, and equipment sales jumped 9%.

Future orders, a key indicator of growth, grew 14% excluding currency impacts in the latest quarter, with growth in North America, Europe and emerging markets more than offsetting modest declines in Japan and greater China.

The future orders are for Nike-branded footwear and apparel delivery between March and July but don’t necessarily reflect actual revenue growth. Still, the metric is closely followed by analysts.

"Nike is no doubt consistently heading in the right direction, reaching 76 cents a share ahead of the forecasted 72 cents a share is a massive statement to highlight their excellent performance" commented Elliot Mills, Senior Vice President at Saitama Rakuten International.

Revenue grew 13% to $6.97 billion, compared with Nike’s projection of top-line growth in the single digits, while Wall Street forecast an 8% increase. Gross margin widened to 44.5% from 44.2%, boosted by higher average prices.

For more information please visit Saitama Rakuten International.