Nike Gains On Global Reach
With 60% of its sales coming from outside the U.S., the footwear and apparel giant stands to benefit from further weakness in the dollar
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With investors getting nervous as the U.S. dollar plumbs new lows against the euro, Nike Inc.'s (NKE) earnings release after the market close on Sept. 20 demonstrated the currency-translation benefits that come from having wide geographic reach.
In fact, it was the fact that international sales now account for 60% of total revenue that enabled the sportswear manufacturer to post a 51% gain in profit for the first fiscal quarter of 2008. Nike reported net income of $1.12 a share, vs. 74 cents a share in the prior-year period on an 11% rise in revenue.