Nike Marked Higher After Stellar Quarter

The company posts 20% growth in operating net and a big gain in revenue.
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Nike's

(NKE) - Get Report

shares looked like winners Friday after the sportswear company swung to a first-quarter profit and said earnings rose 20% before an accounting charge in the year-ago quarter.

Nike, based in Beaverton, Ore., earned $261 million, or 98 cents a share, on revenue of $3.02 billion, compared with a loss of $49 million, or 18 cents a share, on revenue of $2.80 billion last year. Before an accounting charge, Nike earned $217 million, or 81 cents a share, in the year-ago quarter.

Analysts surveyed by Thomson First Call had been forecasting earnings of 88 cents in the latest quarter. The shares were up more than $2 to $59.50 in after-hours trading Thursday.

Looking ahead, Nike said worldwide future orders for athletic footwear and apparel for delivery from September through January total $3.7 billion, 10.5% higher than they stood a year ago. By region, future orders for the USA were down 3%; Europe up 28%; Asia Pacific up 19%; and the Americas up 9%.

Company executives told a conference call late Thursday that Nike continues to believe current fiscal-year earnings will rise in the mid-teens while revenue rises in the high single digits.