Nike shares up 9.3% as earnings beat estimates

Shares of Nike Inc were up 9.3 per cent in early trading after the world's largest maker of athletic gear beat first-quarter earnings estimates, on the back of higher prices and a lower tax rate.

Profit was up at $1.34 a share, excluding some items, the Beaverton, Oregon-based company said yesterday in a statement.

Chief executive Mark Parker, who will succeed Nike co-founder Phil Knight as chairman, had expanded the shoemaker's offerings of women's apparel and boosted its online operations.

Gross profit margin was up  last quarter, with help from higher selling prices, and benefited from broad-based revenue growth.

Nike's effective tax rate came in at 18.4 per cent, as against 21.7 per cent a year earlier.

''They've had a really nice run,'' said Rob Plaza, an analyst at Key Private Bank, Reuters reported. 

Worldwide futures orders were up 17 per cent, excluding the effects of foreign-currency exchange-rate fluctuations and according to analysts estimates, a 10.1 per cent gain, going by data collected by Consensus Metrix.

First-quarter net income was up 23 per cent to $1.18 billion, or $1.34 a share, from $962 million, or $1.09, a year earlier, while revenue  rose 5.4 per cent to $8.41 billion in the period, which ended 31 August.

That beat analysts' $8.22 billion average estimate.

Nike Inc's first-quarter profits outpaced expectations as surprisingly steep China growth boosted the world's largest sportswear maker, despite fears of a slowdown in the world's second-biggest economy.

Nike termed China results as "amazing". The company's robust

Nike's strong China performace came against a slowing trend of consumer sales that had raised concerns at global firms and markets. Even as consumption made up a larger chunk of Chinese growth, confidence indexes were at record lows.

"While we are very mindful of the macroeconomic volatility in China, our brand has never been stronger and our marketplace has never been more healthy," Andy Campion, Nike's chief financial officer, said on an earnings call after the results.

According to Nike market sales had been helped by overhauling of its stores, faster online sales and a busy quarter for sporting events in the country.