Monday, Sept. 20, 2004 | 10:54 a.m.
PORTLAND, Ore. -- Nike Inc. reported a better-than-expected 25 percent increase in first-quarter profits today, helped by its strongest U.S. orders in more than seven years.
For the three months ending Aug. 31, the sneaker and athletic apparel manufacturer earned $1.21 per share, or $326.8 million, compared with 98 cents per share, or $261.2 million, at the same time a year ago. Analysts surveyed by Thomson First Call had predicted $1.11 a share.
"It really was an earnings surprise -- they beat us by 10 cents. I really can't remember when the company beat us by that margin in the past," said Mitch Kummetz, senior equity analyst for D.A. Davidson & Co. in Portland.
He attributed much of the results to an improved relationship with retailer Foot Locker, and a renewed interest in performance footwear because of the Olympics.
First-quarter sales were up 18 percent to $3.56 billion from $3.02 billion a year ago.
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