Nike profits jump 40 percent

BEAVERTON, Ore. - Nike (NKE) says its fiscal second-quarter net income jumped 40 percent, helped by higher average selling prices and an increase in revenue around the world.

Profit topped analysts' expectations, though revenue came in slightly short. 

The world's largest athletic goods maker says net income for the three months that ended on Nov. 30 rose to $537 million, or 59 cents per share. That compares with net income of $384 million, or 57 cents per share, last year.

The company, based in Beaverton, Ore., says revenue rose 8 percent to $6.43 billion from $5.96 billion.

Analysts expected earnings of 58 cents per share on revenue of $6.44 billion. Shares rose 34 cents to $78.60 in after-hours trading.

Nike recently raised the bar for the price of basketball shoes by introducing the Kobe 9 Elite, which retails for a whopping $225. Company followers are expecting the new product to help drive growth in 2014.

"Despite its terrific top line track record in recent years, Nike still has many opportunities to grow its top line, as it continues to increase its 'separation' versus competition and leverage the enormous interest in sports and fitness in both developed and developing economies," stock analysts with Cowen & Co. wrote in a report this week ahead of the company's latest results.