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Nike net jumps 17% in 3Q
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March 16, 2000: 6:29 p.m. ET
After warning, sport shoe vendor tops analyst targets despite lower revenue
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NEW YORK (CNNfn) - Nike Inc., the nation's leading athletic shoe vendor, reported Thursday a 17-percent jump in fiscal third-quarter earnings, topping Wall Street expectations, amid solid sales growth internationally and despite falling revenue.
For the quarter ended Feb. 29, 2000, the Beaverton, Ore.-based company, which warned last month its earnings for the year would fall below analysts' estimates, earned net income of $145.3 million, or 52 cents per diluted share, up from $124.2 million, or 44 cents per share, a year earlier.
Analysts polled by First Call Corp., a market research firm, expected third-quarter 2000 earnings of 50 cents per share.
Revenue fell to $2.16 billion, down slightly from $2.18 billion a year ago.
Ahead of the announcement, which came after the closing bell Thursday, Nike (NKE: Research, Estimates) shares added 7/8 to 33-7/8. But in after-hours trading following the news, the shares jumped as high as 38.
"We continue to show strong growth in profitability despite significant pressure caused by the strength of the U.S. dollar against the euro," said Philip Knight, Nike chairman and chief executive officer, in a statement. "Our international business is robust, showing constant dollar revenue growth in every region outside the U.S."
By region, U.S. athletic footwear revenue rose 4 percent to $858.9 million, while European revenue fell 7 percent to $558.5 million - but a rising dollar was responsible for that decline, Nike said. Revenue in the Asia-Pacific area rose 14 percent to $254.1 million.
For the first nine months of its fiscal year, Nike earned $453 million, or $1.61 per share, compared to $357 million, or $1.24 a share, a year ago. Revenue during that span rose 2 percent to $6.7 billion. 
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