Pedestrians wearing Nike Inc. shoes stand on a sidewalk in front of a store in San Francisco, Calif., in this file photo.David Paul Morris/Bloomberg
Nike Inc. shares jumped as much as 8 per cent in late trading after the world's largest maker of athletic gear beat first-quarter earnings estimates, helped by higher prices and a lower tax rate.
Profit rose to $1.34 (U.S.) a share, excluding some items, the Beaverton, Oregon-based company said Thursday in a statement. Analysts estimated $1.19 on average, according to data compiled by Bloomberg.
Chief Executive Officer Mark Parker, who has been tapped to succeed Nike co-founder Phil Knight as chairman, has expanded the shoemaker's offerings of women's apparel and bolstered its online operations. The company also increased profit margins last quarter, with help from higher selling prices, and benefited from broad-based revenue growth.
The shares rose as high as $123.95 in extended trading after the results were released. Nike had climbed 19 per cent this year through the close of trading Thursday.
Worldwide futures orders rose 17 per cent, excluding the effects of foreign-currency exchange-rate fluctuations. Analysts estimated a 10.1 per cent gain, according to data collected by Consensus Metrix. The measure is closely watched because investors view it as a proxy for future sales.
Net income rose 23 per cent to $1.18-billion, or $1.34 a share, from $962-million, or $1.09, a year earlier. Revenue climbed 5.4 per cent to $8.41-billion, beating analysts' $8.22-billion average estimate.
Nike said in June that the 77-year-old Knight had recommended that Parker succeed him as chairman whenever he steps aside, which the company said was expected to happen in 2016.