PORTLAND, Oregon - profit of the Nike Inc. fourth quarter increased by 14% to beat expectations as strong sales of sports footwear and sportswear worldwide offset the higher costs.
Nike has warned investors recently that the highest production cut in its profit margins by the rest of the year and in 2012. The company raised its prices year last to offset cost pressures, but the popularity of the label remained strong and shoppers continued to buy more Nike products even at higher prices.
"We delivered exceptional results in extraordinary times," Mark Parker, CEO of Nike said Monday.
Nike has reported that it earned 594 million dollars, or $1.24 per share for the quarter ended May 31. The 522 million, or $1.06 per share, it has obtained in the same quarter last year. Income increased by 14% to 5.77 billion.
Results top hand beat $1.16 per share on revenue of 5.53 billion that analysts surveyed by FactSet were anticipating.
Nike shares jumped $3.65, or more than 4%, $69.02 after normal business hours.
Revenue from Nike improved in all markets around the world except for the Japan, which is struggling in the economic downturn and the result of the earthquake and tsunaumi.
Income in North America, its largest market, increased by 22% to $ 2.1 billion as it sold more of its products running, training, and basketball. The company said that improved product lines and previous shipments of the summer has helped boost sales. Income in China, its second largest market, increased by 21%.
Nike also continued its growth in emerging markets such as the Brazil and the Mexico where income has increased by 25%. Business was much milder in Western Europe, where them revenue increased 5 percent and other parts of Europe, where it has increased by 1% due largely to the benefit of exchange rates.
For the full year, Nike earned 2.13 billion dollars, or $4.39 per share, compared to 1.9 billion dollars, or $3.86 per share, for the previous year.
Nike, unlike many other consumer products companies, has overcome the economic downturn well.
While revenues and slower profit the company during the down the global economy, consumers continued to tributary to its popular name everywhere in the world. Nike focus on innovative products and connect with consumers, along with global reach and tight operations, gave the edge he needs grow, analysts say.
"Consumer confidence is still slightly warm," said Morningstar analyst Paul Swinand. But "sporting are less volatile."
Nike officials are in relying on the strength of the brand to propel forward it. The company plans to expand its price increases to a broader range of products starting this spring to balance the costs more high freight, workers, materials.
"Global appetite for sports has never been stronger," said Parker
Nike said orders for products shipped between June and November are up to 15 percent over the same period last year. Investors generally view this as a measure of what retailers think consumers can have an appetite for the upcoming season.
Nike is organizing a Conference for investors Tuesday where will examine the results and discuss its long-term strategy.
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