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EARNINGS ROUNDUP

Nike's Net Income Falls 13% but Shares Rise

September 22, 2006|From Bloomberg News

Nike Inc., the world's biggest athletic-shoe maker, said fiscal first-quarter profit fell 13% on stock option expenses and higher marketing costs. Its shares jumped as sales and orders rose more than analysts estimated.

Net income declined to $377.2 million, or $1.47 a share, from $432.3 million, or $1.61, a year earlier. Revenue in the three months ended Aug. 31 rose 8.6% to $4.19 billion from $3.86 billion, Beaverton, Ore.-based Nike said.

Its shares rose 6% in after-hours trading. They closed at $82.46, down 14 cents.

Global orders of shoes and clothing, a gauge of future sales, rose 6%. Chief Executive Mark Parker increased spending to promote Nike at soccer's World Cup and has introduced new products such as iPod-compatible running shoes.

Orders for delivery between September and January rose 8% in the U.S., Nike said. Goldman Sachs Group Inc. analyst Margaret Mager was expecting a range of 4% to 6% for both global and U.S. orders.

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