Nike Beats on Strong International Sales

Nike (NKE) reported its second-quarter 2008 fiscal earnings after the bell Wednesday, exceeding analyst estimates. For the quarter, the company's net income increased to $359.4 million ($0.71/share) compared to $325.6 million ($0.64/share) last year. Revenue jumped 14% to $4.3 billion. Analysts were expecting earnings of $0.66/share on sales of $4.2 billion for the quarter. Revenue increased 7% in the U.S., 17% in Asia, and 18% in Europe compared to last year. Next quarter's future orders came in at $6.5 billion, a 13.5% rise from the same period last year. Analysts polled by Thomson had expected earnings of $0.66/share on revenue of $4.21 billion. CEO Mark Parker said, "Our strategy for continued growth is very clear -- commit totally to the consumer, deliver innovative and relevant product, and focus our execution and discipline on those parts of the business that offer the greatest growth opportunity," (NIKE F2Q08 (Qtr End 11/30/07) Earnings Call Transcript). Shares of Nike gained 2.4% in late after-hours trading.

"It's a surprisingly strong quarter," said MFC Global retail analyst Sarah Henry. "They've done a good job with their brands. They seem to be taking market share globally. The geographic diversity is helping them in an uncertain environment."

Sources: Press release, Wall Street Journal

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