NEW YORK ( TheStreet) -- Shares of Nike (NKE - Get Report) rose in late trades on Monday after the maker of athletic footwear and apparel posted better than expected quarterly results on strong revenue growth and expense control.
The company reported fiscal fourth-quarter earnings of $594 million, or $1.24 a share, for the three months ended May 31 on revenue of $5.77 billion, up from a year-ago equivalent profit of $522 million, or $1.06 a share, on revenue of $5.08 billion.
The average estimate of analysts polled by Thomson Reuters was for earnings of $1.16 a share on revenue of $5.53 billion.
The stock was last quoted at $85.07, up 4.2%, on volume of around 885,000, according to Nasdaq.com."In fiscal year 2011, we delivered exceptional results in extraordinary times," said Mark Parker, the company's president and CEO. "Our business is organized to drive growth across multiple brands, geographies and categories, as we manage through the ever-changing macroeconomic landscape." Gross margins came in at 44.3%, down 310 basis points, mainly because of higher product costs. Nike said it also experienced elevated freight costs, higher inventory obsolescence reserves and rising royalty expenses related to sales of endorsed team products. The company said futures orders for Nike brand products totaled $10.3 billion for the period stretching from June through November, up 15% from the same period a year earlier. Nike has topped Wall Street's consensus expectations in seven of the past eight quarters, but it missed last time around, posting a profit of $1.08 a share in the March quarter, 4 cents below the average analysts' view. Based on Monday's regular session close at $81.62, the stock was up more than 15% in the past year but topped out at $92.49 in late December and is actually down 5% since the start of 2011. Wall Street was bullish on Nike ahead of the report with 15 of the 21 analysts covering the company at strong buy (10) or buy (5), and the median 12-month price target sitting at $96.50. Jefferies previewed the results on June 22, saying it "believe