Nike Surging

Nike shares are surging after reporting earnings that beat expectations.

On Friday, shares of Nike were up more than 10% after its earnings report on Thursday afternoon.

Nike shares gained 5% on Thursday afternoon after Nike reported first quarter earnings per share of $US1.09 against expectations for $US0.88, according to data from Bloomberg.

Revenue in the quarter totaled $US8 billion against expectations for $US7.83 billion.

Nike also reported gross margins of 46.6%, beating expectations, and worldwide future orders — excluding the impact from currencies — that were up 14% against expectations for a 10% increase. Inventories were up 14% to $US4 billion at the end of the quarter when compared to the prior year period.

The company also reported that market expenses rose 23% during the quarter, which it said was mostly related to the World Cup.

During the first quarter, Nike repurchased 10.6 million shares for about $US819 million.

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