Nike's stock surges after profit, sales beat expectations
Nike Inc.'s stock surged 2.5% in after-hours trade Thursday, after the athletic apparel giant reported fiscal fourth-quarter profit and sales that beat expectations. For the quarter ended May 31, earnings rose to $865 million, or 98 cents a share, from $698 million, or 78 cents a share, in the same period a year ago, and above the FactSet consensus of 83 cents a share. Revenue increased 5% to $7.78 billion, topping the FactSet consensus of $7.69 billion. Gross margin improved by 0.6 percentage points to 46.2%, as higher average selling prices and growth in the company's direct-to-consumer business was partially offset by higher product input and logistics cost. At the end of the quarter, future orders for Nike brand athletic footwear and apparel, scheduled for delivery through November, rose 2% to $13.5 billion. The stock has climbed 9.4% year to date through Thursday's close, while the Dow Jones Industrial Average has edged up 0.4%.
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