The biggest sporting-goods manufacturer in the world – Nike Inc. – made a statement and shared its results for the fourth quarter of the financial year. The company announced that its profit over the period beat the initial analysts forecasts due to increased sales of running and basketball gear goods in North America.
According to the companys statement, its fourth-quarter net income increased by 5.4% and reached 698 million dollars, or 78 cents per share from 662 million dollars or 73 cents per share a year ago, topping the 75 cents median analysts forecast. Nike Inc. also revealed that its revenue jumped by 11% to 7.4 billion dollars for the three months ended May 31st. The annual results of the company include a wholesale revenue of 2.3 billion dollars for soccer products, which is an 18% increase.
The Nike Brand President Mr. Edwards explained that sales related to the football products provided by the company increased by 21% and reached 2.3 billion dollars in 2014. The company has set a goal of surpassing the results of its major rival Adidas AG, especially when it comes to dominance in soccer worldwide.
The sports good provider also announced that there was a great rise in its sports goods orders on the markets in Western Europe, which were reported to have increased by 25%, compared to a 2% gain in the previous year.
Mr. Trevor Edwards said in the statement, which was cited by the Financial Times: “Our comprehensive offensive both on the pitch and in the marketplace drives our leadership as the world’s best football brand, and positions us for growth in this category for years to come.”
The companys shares rose by 3.6% thanks to the investors reaction after its better-than-expected performance over the fiscal fourth quarter.
Nike Inc. was 0.51% up to close at 76.86 dollars per share yesterday, marking a one-year change of 23.33%. According to the information published on CNN Money, the 25 analysts offering 12-month price forecasts for Nike Inc. have a median target of 85.00, with a high estimate of 90.00 and a low estimate of 70.00. The median estimate represents a +10.59% increase from the last price of 76.86.
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