US: Nike Q3 profit up 16% as margins rise
- Q3 net profit up 16% to US$662m
- Revenues up 9% to $6.2bn
- Gross margin up 30bps to 44.2%
Sporting goods colossus Nike grew earnings ahead of revenues in the third quarter of fiscal 2013 thanks to a substantial increase in gross margins.
On a currency-neutral basis, Nike brand revenues were up 10% in the three months to 28 February, thanks to growth in all regions except Greater China and Japan, and in all key categories except sportswear and action sports.
Meanwhile, revenues for other businesses were up 9%, with growth at Converse and Nike Golf more than offsetting lower revenues at Hurley.
The increase in gross margin was attributed to a combination of pricing actions and lower material costs, which more than offset higher labour costs.
However, this was partly offset by higher discounts, particularly in Greater China, the company said.
Nike president and CEO Mark Parker hailed what he called “strong results”, and said: “Given the diversity of our portfolio, we’re able to capture big opportunities that drive sustainable, profitable growth.
“At the same time, we continue to invest in new ways to enhance athletic performance, build strong consumer communities, and improve how we design and manufacture our products.”
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