Nike "rose the most in almost six months after reporting earnings that topped analysts’ estimates, helped by demand in North America," according to Matt Townsend of BLOOMBERG.
The shares increased 3.7% to $101.98 at the close in N.Y., the biggest gain since Sept. 26. Nike jumped 29% in the past 12 months. The Beaverton, Oregon-based company said that net income in the quarter ended Feb. 28 rose 16% to $791M, or 89 cents a share, from $682M, or 75 cents, a year earlier. Key Private Bank analyst Rob Plaza described Nike’s results as a "juggernaut." He said, "It’s really hard to bet against this company right now, and find a large-cap company to produce this kind of profitable growth.” The China division "also bounced back." Revenue rose 15% and orders advanced 22%, topping an estimate for a 13% gain. The strength of the U.S. dollar "continued to weigh on Nike’s results overseas, where it generates more than half its revenue." Sales in western Europe gained 10% last quarter. Without the Euro’s "weakness against the dollar, they would have advanced" 21% (BLOOMBERG, 3/20).
