Nike's 3rd-quarter profit rises

Associated Press + More

BEAVERTON, Ore. (AP) — Nike says its third-quarter net income rose 7 percent as price increases and high demand for its sneakers and athletic gear compensated for rising costs.

The results beat analysts' expectations, but higher costs for materials, labor and freight ate into the company's gross margin, or the amount of each dollar in revenue a company actually keeps.

The world's largest athletic shoe and clothing company said Thursday that its net income for the quarter that ended Feb. 29 rose to $560 million, or $1.20 per share.

That's compared with $523 million, or $1.10 per share, in last year's third fiscal quarter. And it beats the $1.17 per share that analysts polled by FactSet expected on average.

Revenue rose 15 percent to $5.85 billion, which is the amount analysts expected.

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