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Nike shares pop on strong sales

December 21, 2012: 11:56 AM ET

On your mark, get set. Go!

Shares of Nike (NKE) jumped 5% Friday morning, after the company's second quarter results topped analysts' expectations.

Nike said late Thursday that earnings rose 11% on sales of $6 billion in the quarter, driven by surprisingly strong demand in North America.

The company also said future orders for Nike footwear and apparel were up 14% in North America. These orders would be delivered in the December to April period.

Investors cheered Nike's performance in the United States and Canada -- two markets that are considered mature and usually have less potential for growth.

Related: Research in Motion shares plunge 17%

The rebound in North America could help Nike offset continued weakness in China, where sales fell 11% in the quarter, according to traders on StockTwits.

retail_guru
Impressive that Nike can beat #s by a big margin despite China issues - shows how strong its franchise is worldwide, and indeed in US $NKE

Assuming China avoids a hard landing, Nike should be able to cash in on robust growth in the world's second largest economy.

daytradingshrink
$NKE china is just beginning its turn around, if nike can produce this with weak china, next quarter will be huge!

Nike announced a two-for-one stock split in November, the sixth in its history. The stock now trades above $100 a share.

abubnic
Don't forget, $NKE has that stock split coming up on Dec 24. If you owned b/4 Dec 10, you'll get two-for-one.

Other traders pointed to Nike's global footprint, saying the stock is relatively cheap for such a well known brand.

howardlindzon
Love that $NKE is doing what I thought without a peep about data and lifestyle mechanics ....cheapest great brand in world.

vcutrader
Amazes me that a company like $NKE with a monster global brand only has a $44bn mkt cap - # looks good, shame on me

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Ben Rooney is a staff writer for CNNMoney. He covers the European debt crisis and other international finance stories, in addition to writing about stocks, bonds, investing and other Wall Street-related news. Follow Ben on Twitter: @ben_rooney

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