Nike reaps rewards as shoppers trade up
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Nike has reported a stellar quarter as shoppers indulge in its higher margin products.
The sportswear giant’s net income rose 16 per cent to US$791 million in the three months to February 28. Its gross margin stretched 1.4 percentage points to 45.9 per cent and total sales rose seven per cent to $7.46 billion.
The figures beat all market predictions and sent the company’s stock price 4.5 per cent higher in after hours trading on Friday.
However, the company attempted to temper excitement about the figures, warning that the strengthening US dollar will impact in the current trading quarter.
Brian Yarbrough, an analyst with Edward Jones, described the result as “really impressive” for a company of that size.
“This is another just rock solid quarter.”
Questions & Answers
Q.What was Nike's net income for the three months to February 28?
What was Nike's net income for the three months to February 28?
Nike's net income rose 16 per cent to US$791 million in the three months ending February 28. This figure contributed to a stellar quarter for the sportswear giant.
Q.How much did Nike's total sales increase in the reported quarter?
How much did Nike's total sales increase in the reported quarter?
Total sales for Nike rose seven per cent to $7.46 billion in the three months to February 28. These figures surpassed all market predictions for the company.
Q.What warning did Nike issue despite the positive financial results?
What warning did Nike issue despite the positive financial results?
Nike warned that the strengthening US dollar will impact the current trading quarter. This attempt to temper excitement came despite their impressive financial figures.
Q.Who described the results as 'really impressive' for a company of Nike's size?
Who described the results as 'really impressive' for a company of Nike's size?
Brian Yarbrough, an analyst with Edward Jones, described the result as 'really impressive' for a company of Nike's size. He called it another 'rock solid quarter'.
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