Nike Inc., the world’s largest sporting-goods company, rose the most in more than two years after posting fourth-quarter profit that surpassed analysts’ estimates and increasing its long-term sales forecast.
Nike jumped $8.28, or 10 percent, to $89.90 at 4 p.m. Tuesday in New York Stock Exchange composite trading for the largest advance since October 2008.
Net income rose 14 percent to $594 million, or $1.24 a share, in the quarter ended May 31, from about $522 million, or $1.06, a year earlier, Beaverton, Oregon-based Nike said yesterday in a statement. Analysts projected $1.17 a share, the average of 15 estimates compiled by Bloomberg.
Nike has boosted sales and cut marketing costs from a year earlier, when the company promoted around the World Cup. Chief Executive Officer Mark Parker has raised prices to combat rising costs for cotton, labor and transportation.
Sales will grow to as much as $30 billion by the end of fiscal year 2015, Parker said today on a webcast presentation to analysts. The company in May 2010 projected revenue of $27 billion in the same period. As much as $2 billion of the increased forecast may come from the Nike brand, the company said. Nike’s sales in fiscal 2011 gained 9.7 percent to $20.9 billion.
Orders for the Nike brand from June to November increased 12 percent, excluding currency fluctuations. That topped the average estimate of five analysts for a gain of 9.4 percent.
Total revenue in the fourth quarter rose 14 percent to $5.77 billion. Analysts projected $5.54 billion, the average of 13 estimates. Sales in North America, Nike’s largest market, advanced 22 percent to $2.1 billion, led by the running category.
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