Corporate News: Nike Profit Climbs 9%
Nike Inc.'s quarterly profit rose 9% as it benefited from a continued improvement in demand for its athletic apparel and less costly discounting.</br></br>Nike posted a profit of $559 million, or $1.14 a share, for its fiscal first quarter ended Aug. 31. That compares with profit of $513 million, or $1.04 a share, in the same period a year earlier. Revenue increased 7.8% to $5.18 billion.</br></br>The company has seen revenue rebound in the last three quarters after flagging demand during the recession induced it to cut costs and inventory to protect the bottom line.</br></br>Chief Executive Mark Parker said Thursday the results demonstrate "the power of our growth strategy." In June, the company unveiled an aggressive sales-growth goal for the next half-decade, aiming to increase sales 40% by opening new stores and swiftly expanding subsidiary brands like Converse and Umbro.</br></br>Gross margin in the recent quarter rose to 47% from 46.2% because of fewer, and more profitable, discounts, as well as better profitability in the company's e-commerce operations. Inventories were down 3%.