Nike Inc, the world's largest athletic shoe and clothing maker, capped a strong year of financial results by posting a 23 percent surge in quarterly income and easily topping Wall Street's expectations.
For its fiscal fourth quarter, Nike had net income of US$305 million, or US$1.13 per share, up from US$246.2 million, or US$0.92 a share, in the same period last year, the company reported on Thursday.
The results were US$0.05 per share better than the forecast of analysts surveyed by Thomson First Call.
Quarterly revenue increased to US$3.5 billion from US$3 billion for the same period ending May 31 last year.
Analysts said the gains reflected a stronger US economy, better design and marketing, steady expansion into overseas markets, improved inventory control, high visibility for endorsement athletes at top events ranging from the NBA Championship to Wimbledon, a favorable currency exchange rate and very little negative attention generated by labor rights issues, a problem in the past.
Nike also has settled a long dispute with its largest US retailer, Foot Locker, which has helped boost sales despite some slight erosion in its market share.
For the full year, Nike had net income of US$945.6 million, or US$3.51 per share, compared to US$474 million, or US$2.77 a share, last year.
Sales for fiscal 2004 nearly reached US$12.3 billion, up 15 percent from US$10.7 billion for last year.
"It's a good day, today," Nike co-president Charlie Denson said on a conference call with analysts.
With a slate of marquee track and field athletes wearing the Nike swoosh ready for the Summer Olympics, an entire endorsement squad of NBA stars, golf sales up and Lance Armstrong hopeful about a record sixth Tour de France victory, there was little fault to find with Nike, analysts said.
"I definitely think the stars are aligning," said Mitch Kummetz, senior analyst for D.A. Davidson & Co in Lake Oswego, Oregon.
Nike's sales in Asia, its third-largest market, surged 25 percent.
Asia is "a faster-growth region versus the US and Europe," said Adam Friedman, portfolio manager at Cleveland, Ohio-based Integrity Asset Management.
"It's a solid brand. That part of the world is very brand conscious," he said.
Last month, Nike sponsored a tour by Jordan in Beijing, Hong Kong, Taipei and Tokyo as part of its effort to generate demand in Asia. But many consumers in Taipei were disappointed when he showed up onstage for a total of about 90 seconds.
Six days after Jordan's visit, Hank Lin (
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