* Q2 EPS $1.00 vs est $0.97
* Q2 rev $5.73 bln vs est $5.63 bln
* Worldwide futures orders up 13 percent
* Shares up 3 pct after market
By Nivedita Bhattacharjee
Dec 20 Nike Inc's quarterly
results beat Wall Street estimates, as its swoosh logo attracted
shoppers, especially in emerging markets, despite higher prices.
Nike shares were up 3 percent at $96.65 in after-market
trade on Tuesday, after closing at $93.63 on the New York Stock
Worldwide futures orders for the Nike brand, a closely
watched measure of demand in coming months, grew 13 percent to
$8.9 billion at the end of the quarter.
In Greater China, pre-placed orders scheduled for delivery
from December 2011 through April 2012 rose 31 percent, with a 12
percent rise in other emerging markets.
"(Results were) slightly better in every line but you kind
of expect that with Nike ...," said Rahul Sharma, managing
director of investment management firm Neev Capital.
"What it really highlights is that you can see where the
strength in the economy is ... China and other emerging markets
are very strong."
In November, closest rival Adidas AG raised its
sales outlook on strong demand in emerging markets, and Puma
said in October China and Latin America contributed
most to overall sales growth.
But for Nike, futures orders rose 16 percent even in the
United States, and were up in all other markets except for
"The brand continues to show very strong demand... the
strength is just impressive, helping propel the stock higher,"
Matt Arnold, consumer discretionary analyst for Edward Jones,
The Beaverton, Oregon-based company saw margins drop 260
basis points as costs of labor and raw materials rose, but came
in more or less in line with what most analysts had expected.
"Margins were pretty consistent with what we were looking
for. Any time you see a brand that is witnessing this type of
demand, it gives you confidence that over time pricing will be
able to catch up with input costs and labour costs," Arnold
For the second quarter ended Nov. 30, the world's biggest
sports clothing maker earned $469 million, or $1 a share,
compared with $457 million, while analysts, on average, were
expecting earnings of 97 cents a share, according to Thomson
Revenue rose 18 percent to $5.73 billion.
Excluding foreign exchange fluctuations, revenue for the
Nike brand rose 18 percent. The company, which also owns brands
like Converse, Cole Haan, Umbro and Hurley, said revenues from
these segments increased 5 percent.