Nike Inc., the world's top athletic shoemaker, on Tuesday said it expects fiscal third-quarter profit and revenue to beat analysts' estimates, helped by strong demand and a weak U.S. dollar, sending its shares to an all-time high.
The Beaverton, Oregon, company said it expects to report earnings of 71 cents a share to 74 cents a share for the fiscal third quarter ended Feb. 29. Nike also said third-quarter revenue rose more than 20 percent.
Wall Street on average had expected a profit of 64 cents a share on revenue of $2.81 billion, according to Reuters Research, a unit of Reuters Group Plc.
Nike shares were up $1.95, or 2.6 percent, at $76.44 on the New York Stock Exchange in morning trade.
Philip Knight, Nike's chief executive officer, said in a statement that the company's businesses in the United States and Asia Pacific as well as strong European currencies boosted its sales growth during the third quarter.
A weak U.S. dollar helped lift the value of overseas sales when they are converted back into dollars.
"It indicates that the company's hitting all cylinders in other areas of its business..." such as supply-chain management, internal control, design and new products, said Jamelah Leddy, an analyst at McAdams Wright Ragen.
Nike has been working to settle a dispute over pricing and promotions that has kept its high-end shoes off Foot Locker shelves since late 2002. Last Wednesday, the No. 1 U.S. athletic shoe retailer said its relationship with Nike, its top vendor, was much improved.
With the return of the more meaningful Foot Locker business early this summer, it could continue to help future U.S. orders, said Leddy. She rates Nike shares "buy" and does not own them.
The company said it still expects fourth-quarter revenue to show a percentage rise in the high single digits.
