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Nike shares jump as demand in China and the US soars

Nike shares jumped more than 2 per cent in afterhours trading, as a 34 per cent jump in future orders in Greater China impressed.

Clare Hutchison
Wednesday 23 December 2015 12:04 GMT
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Nike shoes displayed in a shop in Jakarta
Nike shoes displayed in a shop in Jakarta (Getty Images)

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Christmas came early for investors stocking up on Nike shares after the leading maker of sporting goods revealed booming business in China.

Already the year’s top performer on US stock index the Dow Jones Industrial Average, the sportswear brand shares jumped more than 2 per cent in afterhours trading, as a 34 per in future orders in Greater China impressed.

In its home market of North America future orders were up 14 per cent, helped by demand for its higher-margin footwear brands including basketball shoes named after LeBron James, the basketball star with whom Nike just signed a lifetime sponsorship deal rumoured to be worth more than $500 million (£336.8 million).

The company has seven of the world’s 10 highest-earning sports stars on its books, including Roger Federer and Tiger Woods.

Total future orders were 20 per cent higher, well above analysts’ expectations of 13.6 per cent.

Nike also reported second-quarter revenue up 4 per cent at $7.7 billion and net income of $785 million, a 20 per cent increase.

Chief executive Mark Parker was upbeat for the coming year.

"We see tremendous opportunity ahead as we enter an Olympic and European Championships year with a full pipeline of inspiring innovation for athletes everywhere," he said.

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