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Nike 4th quarter net income tops estimates

Published June 26, 2014 3:26 pm

Retail • Higher revenues offset costs of hosting 10 teams, including U.S., and advertising.
This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

New York • Nike's fourth-quarter net income rose 5 percent as higher revenue offset heavy investments in marketing for the World Cup soccer tournament.

Results topped expectations and shares rose in aftermarket trading.

Nike is outfitting 10 teams during the World Cup, taking place now in Brazil, including the U.S. team.

The athletic gear maker says net income for the three months ended May 31 rose to $698 million, or 78 cents per share. That compares with net income of $662 million, or 76 cents per share, in the same quarter last year. Analysts expected net income of 75 cents per share, according to Fact Set.

Revenue rose 11 percent, to $7.43 billion from $6.7 billion. Analysts expected revenue of $7.34 billion. Revenue for the Nike brand rose 13 percent to $7 billion.

Beaverton, Oregon-based Nike says orders for deliveries scheduled from June through November rose 11 percent compared with a year ago.

For the year that ended on May 31, net income rose 9 percent to $2.69 billion, or $2.97 per share, compared with $2.47 billion, or $2.68 per share.

Revenue rose 10 percent, to $27.8 billion from $25.31 billion.

Shares rose $1.94, or 2.5 percent, to $78.80 in aftermarket trading. The stock had been down about 2 percent in 2014.