Athletic gear maker Nike Q3 net income jumps 55 percent


AP

BEAVERTON, Oregon — Nike Inc. said Thursday its third-quarter net income rose 55 percent as the athletic gear maker’s resurgence in North America and easing material costs helped offset continued weakness in China.

The world’s largest athletic shoe and clothing company’s results beat expectations and its shares jumped 8 percent in aftermarket trading.

Like most global companies, Nike Inc. has been dealing with Europe’s fluctuating economy and a slowdown in growth in China. Nike has been working to reduce its inventory in China and reworking its offerings there to adapt to the changing tastes of Chinese consumers. It also has been focusing on growth in North America, selling off less profitable brands like Umbro to focus on core brands like Nike.

The company’s quarterly results show Nike’s strategy is paying off in North America, but it’s still facing weakness in China. North American revenue, which accounts for 40 percent of revenue, rose 18 percent to US$2.55 billion. Revenue in China, which accounts for 10 percent of revenue, was down 9 percent to US$635 million.