Nike Results Top Estimates

(RTTNews) - Nike Inc. (NKE), the world's largest athletic shoes and apparel maker, said Thursday after the markets closed that its third quarter net profit fell 21% from last year, when results were boosted by gains from the sale of the Umbro and Cole Haan businesses.

However, the company's quarterly earnings per share came in above analysts' expectations as did its quarterly revenue.

Mark Parker, President and CEO of Nike, said, "Despite macroeconomic challenges, Nike delivers consistent results because we focus on the biggest opportunities for growth while we manage risk across our diverse global portfolio. This is how we continue to drive long-term value for our shareholders."

Nike shares are currently gaining 1.22% in after hours trading after closing the day's regular trading session at $79.27, up 12 cents. The shares trade in a 52-week range of $53.53 to $80.26.

For the third quarter ended February 28, 2014, the Beaverton, Oregon-based company reported net income of $685 million or or $0.76 per share, compared to $866 million or $0.95 per share for the year-ago quarter.

The year-ago results included income from discontinued operations of $204 million or $0.22 per share.

On average, 26 analysts polled by Thomson Reuters expected the comp0any to earn $0.72 per share for the third quarter.

Gross margin for the quarter improved to 44.5% from 44.2% a year earlier, due to higher average prices and continued growth in the higher margin Direct to Consumer business, partially offset by higher product input costs, unfavorable foreign exchange rates, and higher discounts.

Revenue for the third quarter rose 13% to $6.97 billion from $6.19 billion in the same quarter last year, driven by strong demand. Twenty-four analyst had a consensus revenue estimate of $6.69 billion for the third quarter.

For the third quarter, the company's North America revenue rose 12% to $3.1 billion, while Western Europe revenue surged 22% to $1.3 billion and revenue from Eastern Europe increased 17% to $356 million. Greater China revenue grew 9% to $697 million, but Japan revenue fell 9% to $177 million. Third quarter revenue from emerging markets rose 8% to $937 million.

Footwear revenue for the quarter rose 15% to $4.2 billion, while apparel revenue increased 10% to $1.9 billion.

As of the end of the quarter, worldwide futures orders for Nike Brand athletic footwear and apparel scheduled for delivery from March 2014 through July 2014 totaled $10.9 billion, up 12% from a year ago.

During the third quarter, Nike repurchased 10.4 million shares of its common stock for about $788 million as part of the four-year, $8 billion program approved by the company's Board of Directors in September 2012. As of the end of the third quarter, the company has purchased a total of 39.6 million shares under that program for about $2.5 billion.