Net Income Jumps 40% at Nike
Heading into the holiday season, all eyes are aimed on retail. A tough economic landscape has left many traders and investors wondering how well the space will do this season. However, on Thursday afternoon, Nike (NYSE:NKE) reported some startling good results after the bell. The world’s largest athletic goods maker announced to the street net income for the three months that ended on Nov. 30 rose to $537 million, or 59 cents per share. In comparison with net income of $384 million, or 57 cents per share, last year.
On the top line, the company announced it generated revenue growth of 7.8 percent. Nike rung up an astounding $6.43 billion in revenue, up from $5.96 billion a year ago. These results came in slightly better than analyst estimates. Analysts had expected the athletic company to report earnings excluding items of 58 cents a share on $6.44 billion in revenue, according to a consensus estimates. Nike’s net income jumped 40 percent, helped by higher average selling prices on its shoes and an increased revenue around the world. It is good to see a company as established as Nike able to generate such substantial net income growth.
Tough economic situation? Well, a 40 percent increase in net income would say otherwise. Following the announcement, shares of the company were largely unchanged on the day. At the time of this writing, shares of Nike were to the downside by a third of a percent to $78.26 amid broad market weakness. Going into the weekend, analysts should have enough data to pour over. Come the beginning of next week it is likely we see a number of analyst revisions and estimates surface. Within the options market, it looks like a lot of premium will be lost on the rather dull move following earnings.
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