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Overseas Sales Give Nike a Lift in Quarter by SB Kicks

BEAVERTON, Ore. — The shoe and apparel company Nike said its profit grew 9 percent in the second quarter as strong sales overseas offset weak domestic sales.

The company said Wednesday that its net income rose to $391 million, or 80 cents a share, compared with net income of $359.4 million, or 71 cents a share, in the comparable quarter a year earlier.

The company said its revenue grew 6 percent, to $4.6 billion from $4.3 billion. Changes in currency exchange rates increased revenue by 1 percentage point for the quarter.

Nike’s chief executive, Mark Parker, said the results demonstrate the strength of the brand. He said the current state of the industry and the world offer opportunities for Nike to become a stronger leader.

The company had strong sales growth in Asia and other foreign markets. Revenue in Asia jumped 22 percent for the quarter. But domestic sales were weak. Total revenue in the United States decreased 1 percent, with significant drops in equipment sales.

The company’s future orders, which are product scheduled to be delivered between December and April, fell 1 percent lower than such orders reported for the same period last year. Excluding the effect of changes in foreign currency exchange rates, reported orders grew 6 percent.

Stock in Nike, which is based in Beaverton, rose $1, to $50.64 a share.

This article was published on Tuesday 02 June, 2009.
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