Nike profit rises 32%

Nike Inc., the world's largest athletic-shoe maker, said Tuesday that fourth-quarter profit climbed 32 percent on increased overseas demand and higher clothing and equipment sales in the U.S.

Net income rose to $437.9 million, or 86 cents a share, from $332.8 million, or 64 cents, a year earlier, Nike, based in Beaverton, Ore., said in a statement. The profit matched analysts' estimates.

International revenue climbed on a weakening dollar, helping spur a 12 percent gain in Europe. Rising incomes and sporting events such as the 2008 Olympic Games spurred consumer spending on athletic footwear and clothes in China, the world's fastest-growing major economy.

"They're No. 1 in China. It's nice to have so much market share in an area that's growing so fast," said Peter Kwiatkowski, who helps manage about $21 billion, including Nike shares, at Cincinnati-based Fifth Third Asset Management.

Revenue in the three months ended May 31 climbed 9.4 percent to $4.38 billion. U.S. sales rose 10 percent, led by a 11 percent gain in apparel and a 23 percent jump in equipment.

Global future orders for delivery of shoes and clothing between July and November rose 12 percent, Nike said.

Last week, Hong Kong-based Yue Yuen Industrial Ltd., Nike's biggest supplier of shoes, said revenue rose 11 percent for the six months through March 30 on increased sales from wholesale and retail operations in China.

Shares of Nike rose 1 cent to $53.82 Tuesday in New York Stock Exchange composite trading. The stock has climbed 8.7 percent this year.

Analysts surveyed by Bloomberg estimated average profit of 86 cents a share on sales of $4.37 billion.

The Federal Reserve's U.S. Trade Weighted Major Currency Dollar Index, which tracks the dollar's performance against seven currencies including the euro, the yen and the British pound, has declined 4 percent in the past year.

Chief Executive Officer Mark Parker said in February that the company will open 100 of its own stores within the next three years to showcase products as part of its goal to grow sales to $23 billion by 2011.

Parker last year reorganized internally to focus groups on six major areas including soccer and women's fitness rather than concentrating on product types such as jerseys. The shift came as Nike lost market share to Baltimore-based Under Armour Inc. in selling tight-fitting, sweat-wicking workout clothes.

Nike and Foot Locker Inc., the largest U.S. athletic-shoe retailer, said last month that they will open as many as 50 "House of Hoops" stores in the U.S. in the next three years to boost sales of higher-priced basketball shoes.