Nike Reports 15% Profits Hike

22 December 2005

Sports shoe and clothing titan Nike has reported a 15% jump in second fiscal quarter profits, thanks to strong demand for its footwear in the US.

However, slow growth in Europe and Japan and doubts among analysts over future global orders sent the US-headquartered company's share price down by 3%.

The upcoming merger of European sportswear and equipment giant Adidas-Salomon with US-based Reebok International could signal stronger competition for Nike next year.

Nike posted a fiscal Q2 profit of $301.1 million (€253.5m; £171.9m), compared with $261.9m a year earlier. Revenue rose 10% to $3.5 billion, from $3.1bn in the year-ago period.

Worldwide orders for athletic footwear and clothing for delivery from December 2005 through April increased year-on-year by 2.5% to $5.2bn. Future orders in the US grew 9%.

Data sourced from New York Times; additional content by WARC staff