Nike, Micron: After-Hours Trading (Update 1)
Updated from 5:12 p.m. ET to include latest share prices, additional information on Wet Seal and Cost Plus.
NEW YORK (TheStreet) -- Shares of Nike(NKE) ticked up in late trades Thursday after the sneaker maker reported an above-consensus profit for its fiscal third quarter as it kept a tight lid on expenses in order to counter margin pressure from higher product costs.
The Beaverton, Ore.-based company posted a profit of $560 million, or $1.20 a share, on revenue of $5.85 billion for the quarter ended Feb. 29, beating the average estimate of analysts polled by Thomson Reuters for earnings of $1.17 a share on revenue of $5.82 billion in the period.
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Gross margin came in at 43.8% for the quarter, down from 45.8% a year earlier, but selling, general and administrative expenses grew slower than revenue, totaling $1.8 billion for the period, or 30.8% of revenue. In the same period a year earlier, Nike said SG&A expenses totaled $1.64 billion, or 32.2% of revenue.
The stock was last quoted at $112.26, up 1.1%, on volume of nearly 500,000, according to Nasdaq.com. Based on Thursday's regular-session close at $110.99, the shares were up 14.6% so far in 2012 and 44% over the past year, hitting a 52-week high of $112.97 earlier this week.
"Our relentless focus on innovation delivered powerful new products and services for athletes and consumers, and continues to drive value to our shareholders," said Mark Parker, the company's president and CEO, in a statement. "The environment remains volatile, but I'm optimistic about the future. We're starting a great season of major sports events and we have a pipeline full of innovation to fuel growth over the long term."
Nike said inventories stood at $3.36 billion as of Feb. 29, up 32% from $2.54 billion at the same time last year. Worldwide futures orders -- those slated for delivery in the March-July timeframe -- totaled $9.4 billion, up 15% from a year ago.
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