WASHINGTON COUNTY (dpa-AFX) - Nike Inc. (NKE), the world's largest athletic shoes and apparel maker, Thursday reported a fourth-quarter profit that fell short of Wall Street estimates, while revenues came in above expectations.
Beaverton, Oregon-based Nike reported fourth-quarter profit of $989 million or $0.62 per share, compared with last year's profit of $1.14 billion or $0.69 per share. On average, 27 analysts polled by Thomson Reuters expected earnings of $0.66 per share for the quarter.
The company said profit growth was driven largely by revenue growth, strong gross margin expansion and lower average share count, partially offset by higher selling and administrative expenses and higher tax rate.
Revenues for the quarter rose 4 percent to $10.18 billion from $9.79 billion last year. Analysts had a consensus revenue estimate of $10.16 billion for the quarter.
Gross margin rose to 80 basis points to 45.5 percent, driven mainly by higher average selling prices and favorable foreign exchange rates and growth in Nike direct.
Revenues for the Nike Brand were $9.7 billion, up 10 percent, while Converse were $491 million, flat to prior year.
NKE closed Thursday's trading at $83.66, up $1.11 or 1.34%, on the NYSE. The stock, however, slipped $0.65 or 0.78% in the after-hours trade.
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