Sports brand Nike has beaten analysts' expectations for the 8th quarter in a row, which have prompted the company to increase its full-year forecast.
Popular shoe market
Nike managed these excellent results on the back of increased sales for shoes with higher profit margins while other expensive products also sold well in the previous quarter. Nike's future orders, for items in July - November, also increased more than expected: up 13 %. Analysts had expected growth to slow down to 10.4 %. By comparison, it grew 11 % in the quarter prior to this one.
High-margin basketball brands (like shoes for LeBron James, Kobe Bryant and Jordan) are hugely popular in the United States and are in fact the fastest-growing shoe branch within the company. Nike also sold more running shoes, despite fears of lower demand.
Nike's total turnover grew 4.8 % to 7.78 billion dollars (7 billion euro) and net profit spiked 24 % to 865 million dollars (770 million euro). Nike's North American turnover, its largest market, grew 13 %.
Nike has also adjusted its full-year forecast to a "low, double-digit turnover growth", while its previous forecast spoke of a number below 10 %.