Boston, MA 09/29/2014 (wallstreetpr) – Nike Inc. (NYSE:NKE) was one of the biggest beneficiary of the FIFA World Cup, seen by a 23% increase in net income, mostly attributed to sales made during the event. Net income soared to a high of $962 million or $1.09 a share, from a low of $779 million reported a year earlier. The earnings were enough to beat analyst estimates of 88 cents compiled by Bloomberg.
Full Year EPS to Improve by 20%
The world Cup event was the most watched event in the months of June and July consequently boosting the company’s sales especially on soccer gears. Nike Inc. (NYSE:NKE) sales have also enjoyed impressive sales as consumers in the U.S continue to buy more athletic apparel for day to day use. Brian Yarbrough, an analyst at Edward Jone & Co, argues that Nike’s dominance on sports apparel is second to none, a position that allows it to take market share from rivals.
China’s Avenue for Growth
The world’s largest sporting-goods maker expects earnings per share for the year to improve by 20% as orders continue to improve by 14%. Total sales for the quarter were up by 15% coming in at $7.98 billion consequently beating analyst estimates of $7.78 billion. Nike Inc. (NYSE:NKE) had to bolster its marketing campaign for the world cup by 23% considering Adidas AG was the official sponsor for the event. The investment looks to have paid off seen by the impressive earnings.
China continues to offer another growth opportunity avenue seen by an 18% increase in sales for the first quarter that came in at $679 million. Adidas has already slashed its annual profit forecast as it continues to grapple with slump in demand for golfing equipment. Production and marketing costs continues to be another niggling problem for the second-largest sporting-goods maker.
