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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

  • Ugly day for maker of UGG boots

    Are large furry boots no longer in fashion? Seems that way for investors at least.

    Shares of Deckers Outdoors Corp. (DECK), the maker of the UGG line of footwear, have been trampled underfoot (of all the Led Zeppelin songs to use in the opening ceremonies for the London Olympics, Danny Boyle chose that one?) the past few days. The stock was down 8% Wednesday afternoon and has fallen more than 17% MORE

    - Sep 19, 2012 12:36 PM ET
    Posted in: , , ,
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