Nike Profits Up By 55 Percent

Nike Inc.’s profits climbed 55 percent in its first fiscal quarter, reflecting improved sales of sports footwear and apparel, the company announced Monday.

Net income for the quarter ended Aug. 31 was $164.8 million, or $2.26 per share, compared with $106 million, or $1.43 per share, last year.

Revenue jumped 38 percent to $1.61 billion from $1.17 billion in 1994.

Nike’s stock soared on the news. Its Class B shares rose $7.12-1/2, or 7.7 percent, to $99.62-1/2 each in trading on the New York Stock Exchange.

Jennifer Black Groves, an analyst who follows Nike at Black & Co. in Portland, called the numbers “absolutely awesome.”

“This was a very nice earnings surprise,” she said. Groves had predicted earnings would come in at $1.98 per share. Taken together, Wall Street analysts forecast earnings at $1.86 a share, according to Zacks Investment Research.

Nike’s board of directors also approved a two-for-one stock split.