Nike shares jump on strong demand

<p>Shares in Nike have jumped on stronger home demand for its shoes and clothing.</p>

The sportswear company saw its share price close higher by more than six per cent on Friday (December 21st) after it reported that orders for delivery of its shoes and clothes in the coming months jumped by 14 per cent in the home market, while worldwide orders for the December-April period advanced by six per cent.

This is a welcome turn of events for the organisation, which posted lower profit margins on the second quarter.

Chief executive of Nike Mark Parker said the rise in demand for the start of 2013 is encouraging, particularly where its US and Canada markets are concerned.

"In North America, we created great momentum. This is somewhat counterintuitive to some, given this market size and assumed maturity. But I see tremendous growth potential in North America," he commented.

At 15:05 GMT today, Nike shares rose by 5.7 per cent in Frankfurt to €78.23 per unit.

Find CFD trading strategies for the European markets at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.