Nike has released better than expected results for their third quarter. The company cited a rise in demand for sporting goods in the United States. For the three-month term that ended February 29, Nike announced a 15% increase over the same quarter last year. Total sales for the quarter were $5.8 billion, beating estimates.
For the same quarter, North America sales were up 17%. Net income increased by 7% to just over $560 million, as more was spent across North America on athletic gear. One measure that is closely watched as an indicator of demand for the coming months is future orders of Nike apparel and footwear. That latest figure was up 15% to over $9.4 billion.
A boost in athletic apparel and footwear was expected with the upcoming London Olympics and the unveiling of the company’s NFL uniforms due in April.
CEO and president of Nike, Mark Parker said, “Our third quarter was strong. Our continued focus on innovation was able to deliver new products for consumers and athletes alike.”
Increases in prices and a high demand for athletic gear and running shoes made by Nike compensated for higher product costs that helped to lower gross margins to 43.8%. Revenues in China increased 25%. Nike shares were up on the day to $111.35 following the announcement of the quarterly earnings.
