Nike 1st-quarter net income rises 9 percent as demand and margins increase

Nike 1st-qtr net income rises 9 percent

BEAVERTON, Ore. — Growing demand and strong margins helped to drive Nike Inc.’s first-quarter net income up 9 percent, the company said Thursday.

The world’s largest athletic shoe and clothing company said it earned $559 million, or $1.14 per share, for the quarter that ended Aug. 31. That’s up from $513, or $1.04 per share, in the same quarter of the prior year.

Nike’s revenue grew 8 percent to $5.18 billion, as sales improved across all its categories and all geographies but Japan, compared with a year earlier.

Analysts surveyed by Thomson Reuters, on average, expected the company to earn $1.01 per share on revenue of $5.22 billion.

Nike CEO Mark Parker said the results demonstrated the power of Nike’s brand and its growth strategy. He assured investors the company will continue leveraging those strengths to navigate during the difficult economy.

The company said its tight control on inventory, limits on close-out sales and improved margins on some items more than offset the impact of currency fluctuations and increased freight costs.

Shares rose in after-hours trading on the news after trading near yearlong highs during the week.