Dec 20 Nike Inc beat profit estimates
for the second quarter on strong demand in its domestic market
and appears on track to keep worldwide demand steady, sending
shares up 4 percent.
Future orders, or orders of Nike branded shoes and clothing
scheduled for delivery from December 2012 through April 2013
were up 14 percent in North America, Nike's most mature market.
Worldwide orders were up 6 percent, the same as last
"The China problem won't go away in 12-18 months, but it is
no worse than it was expected," said Rahul Sharma, founder and
managing director of Neev Capital, a London-based consulting
"But look at North America, it is on fire. And this is such
a big business," he said.
Nike had been caught with excess inventory in key markets
like China, and was finding it difficult to tackle intense
competition and frequent promotional sales by local brands,
while distributors and retailers remain wary in an uncertain
On Thursday, the company said inventories for the second
quarter ended Nov 30 rose 9 percent, a much smaller rise than
the 35 percent it saw last year.
For the second quarter, the company earned $384 million, or
1.14 a share. Analysts, on average, were expecting the company
to earn $1 a share, as per Thomson Reuters I/B/E/S.
Revenue rose 7 percent to $6.0 billion.
Nike shares were trading up at 103.23 Thursday after the
bell. They closed at $99 on the New York Stock Exchange.