Nike's, the #1 athletic shoe company, stock rose 5.3% to $74.66. This stock was the lead gainer in the S&P 500 Index's textiles and apparel group. Demand for products such as apparel and running in the United States also increased. Analysts expect demand to continue to be driven by events such as the World Cup in South Africa and Tiger Woods' expected return to the Masters golf tournament. Worldwide orders of shoes and apparel for delivery between March and July, an indicator of future sales, rose 9% to $7.1 billion. Gains were driven in North America, Western Europe, China and other emerging markets. In North America, revenue increased 1% to $1.7 billion, led by a 6% gain in apparel sales. Nike's selling, general and administrative expenses rose 16% to $1.6 billion while its gross margin increased to 46.9% from 43.9% in the same period last year.
All of these causes for demand lead to Nike increasing sales and revenue, even in these tough economic times. Our nation's capitalist system allows Nike to charge whatever they wish for their products, so as long as there is high demand for them, Nike will continue to be the #1 athletic shoe company.
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