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September 25, 2011

Nike profits from increased sales

Nike's latest profits have met market expectations, sending its shares up more than 5% in after hours trading.

The US sportswear giant made a net profit of $645m (£420m) in the three months to 31 August, up 15% from its same first quarter period last year.

Its revenues rose 18% to $6.1bn, as Nike said demand for its products remained strong around the world.

The rise in sales helped to offset a fall in profit margins caused by higher raw material prices.

Oregon-based Nike said its profit margin declined to 44.3% from 47%.

Looking forward, Nike chief executive Mark Parker said it "pays to be prudent" in the current economic climate.

He added: "It's also essential that we remain on the offensive, creating opportunities.

"We do that by connecting with consumers, designing innovative products and delivering amazing experiences."

Source: www.bbc.co.uk

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