THB, Banditos, Wayward and more confirmed for Cosmic Cocktail!

Nike tramples forecasters with profit leap of 81%


BEAVERTON, Ore. -- Nike Inc.'s fiscal second-quarter net income surged 81 percent, it reported yesterday, smashing Wall Street's estimates with strong sales of its athletic apparel and shoes worldwide.

Net income rose to $176.9 million, or 60 cents a share, from $97.8 million, or 34 cents, a year earlier. The earnings far surpassed the average estimate of 54 cents from 13 analysts surveyed by First Call Corp.

The company said orders for its clothing and shoes rose 54 percent, a strong increase that astonished analysts.

"They're above their industry," said analyst Brett Barakett of Salomon Brothers Inc.

"This is an $8 billion company and they're able to increase revenue 50-plus percent. I'm blown away."

Revenue rose 54 percent to $2.1 billion from $1.36 billion.

Nike's shares jumped after the results were released, and closed up $6.375 at $59 on trading of 1.3 million shares.

The company said orders for athletic footwear and apparel scheduled for delivery between December and April totaled $4.1 billion, 54 percent higher than a year ago.

Nike said the year-ago results were adjusted for a 2-for-1 stock split and a change in the way its international units report their earnings.

U.S. athletic footwear and apparel revenue rose 63 percent to $1.19 billion. International sales rose 60 percent to $779.3 million.

Revenue from Nike's other brands, including Bauer, Cole Haan, Tetra Plastics and Sports Specialties, fell 1 percent to $133.6 million.

U.S. sales of men's running shoes rose 90 percent and men's basketball footwear increased 38 percent, the company said. Sales of women's fitness shoes increased 79 percent, while men's training shoes rose 57 percent.

Pub Date: 12/19/96

Copyright © 2019, The Baltimore Sun, a Baltimore Sun Media Group publication | Place an Ad