Overseas sales lift Nike’s profits

  • Associated Press
  • Wednesday, December 19, 2007 10:25pm
  • Business

PORTLAND, Ore. — Nike Inc. reported 10 percent growth in its second-quarter profit, largely fueled by overseas sales growth for the athletic shoe and clothing company.

Nike said second-quarter net income grew to $359.4 million, or 71 cents per share, up from $325.6 million, or 64 cents, in the same period a year earlier.

The results, reported Wednesday, exceeded analyst expectations.

Revenue for the Beaverton-based company grew 14 percent to $4.3 billion for the quarter ending Nov. 30. Changes in currency accounted for 4 percentage points growth in revenue.

The company saw the largest revenue growth in the Americas region at 19 percent. Revenue growth in Europe followed closely at 18 percent and the Asia-Pacific regions jumped 17 percent. By comparison, growth in the U.S. was low, growing 7 percent — although it remains the largest market for Nike.

The company also reported that worldwide future orders, which are scheduled to be delivered from December through April, totaled $6.5 billion — up 13 percent from the same period last year. Changes in currency exchange rates increased orders growth by 3 percent.

Nike President and Chief Executive Officer Mark Parker called the second quarter “another great one.”

“It illustrates the ability of our portfolio to deliver consistent, profitable growth,” he said in a statement.

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