Nike's fiscal 2nd-quarter profit jumps 40 percent on high prices
December 21, 2013, 12:07 am TWN
BEAVERTON, Oregon -- 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 US$78.26 before the report. The stock is up 52 percent year to date, and hit an all-time high of US$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.