Nike earnings just did it

  @gregorywallace September 26, 2013: 5:55 PM ET
nike earnings

Nike's revenues grew worldwide, with one big exception: China.

NEW YORK (CNNMoney)

Nike continued to step it up this quarter.

The world's largest sports apparel company reported earnings of $0.86 per share, which beat analyst expectations, and revenue growth of 8% - to $7 billion - which was on par with projections.

Nike (NKE, Fortune 500)'s future orders, a strong barometer of the company's prospects in the months ahead, were up 8%.

Its stock surged 6% in after-hours trading after climbing just over 2% during the day. Much of that jump came in the final two hours of trading.

Nike also reported revenue growth in every region except for in China, where it dropped 3%.

But the company now expects revenue to grow there next quarter, after initially projecting a second quarter of losses. Analysts are closely watching Nike's success in China, which has not performed as strongly as North America.

Brand president Trevor Edwards told investors the company was taking "decisive action to reset this market." He said sales were up at stores where product selection and layout had been changed. Last quarter, CEO Mark Parker cautioned, "The race in China is a marathon, not a sprint, and we're set up for the long run."

Edwards said the company's success in Western Europe, where sales were up 8%, showed Nike's efforts to revitalize a market could be successful.

Next year, the company is looking to the World Cup -- the soccer championship to be held in June in Brazil -- to boost its sales.

"We intend to build upon our position as the leading football (soccer) brand in the world," Edwards said, pointing to the Hypervenom cleat worn and marketed by a Brazillian soccer star, Neymar, that has become the company's second-best selling cleat.

Although Nike's stock has performed strongly this year, competitor Under Armour (UA) has outpaced it. German-based competitor Adidas (ADDDF) last week lowered its full-year guidance citing Euro currency issues.

Earlier this month, Nike joined the Dow alongside Goldman Sachs (GS, Fortune 500) and Visa (V, Fortune 500), becoming the sole apparel-maker on the index. Those three filled spots vacated by Alcoa (AA, Fortune 500), Hewlett-Packard (HP) and Bank of America (BAC, Fortune 500), which were removed from the benchmark index because of their low stock price. To top of page



Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 16,424.85 162.29 1.00%
Nasdaq 4,086.23 52.06 1.29%
S&P 500 1,862.31 19.33 1.05%
Treasuries 2.64 0.01 0.34%
Data as of 12:31am ET
Company Price Change % Change
Bank of America Corp... 16.13 -0.26 -1.59%
Facebook Inc 59.72 0.63 1.07%
Yahoo! Inc 36.35 0.00 0.00%
Intel Corp 26.93 0.16 0.60%
Alcoa Inc 13.42 0.37 2.84%
Data as of Apr 16
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.41%4.44%
15 yr fixed3.33%3.31%
5/1 ARM3.34%3.55%
30 yr refi4.39%4.41%
15 yr refi3.31%3.30%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.