Nike's sales climbed to $7.46B for the three months ended Feb. 28, up from $6.97B a year earlier, and "excluding the effect of currencies, sales improved 13%," according to Tess Stynes of the WALL STREET JOURNAL. Nike has "benefited from the blurring" of fashion and athletic wear, and it "continued to post sales gains in the big markets of North America and Western Europe." The company's shares "rose 1% to $99.50 in after-hours trading following the earnings report." Worldwide orders of Nike apparel and footwear for delivery between March and July "grew 2% year-to-year, including currency changes." That is "far slower than both the 12% growth" that Nike "reported for the year-earlier period and the 7% growth reported last quarter." For the quarter, Nike "reported a profit" of $791M, up from $682M a year earlier. Nike Brand President Trevor Edwards said on the company's earnings call sales of core running footwear "isn't performing as well as we would like, particularly in North America." But he added that "sales of 'running-inspired' sportswear were strong, indicating the strength of the 'athleisure' trend of wearing athletic wear as fashion outside the gym." Nike sales in Western Europe increased 10% to $1.42B, though foreign-exchange rates "cut sales growth" by 11%. Sales fell 10% in Central Europe to $319M but "would have been up 7% without the currency hit." In North America, where Nike "dominates the market, Nike brand sales grew 6%" to $3.25B. Gross margin "rose to 45.9% from 44.5%" (WALL STREET JOURNAL, 3/20). At presstime, shares of Nike were trading at $102.43, up 4.2% from the close of business on Thursday (THE DAILY).
