Nike (NKE) Higher Following Boosted FY12 Outlook from Large Rival

April 30, 2012 4:00 PM EDT
Nike (NYSE: NKE) shares have been in positive territory all day Monday following what would seem to be a bullish announcement from one of its largest rivals.

According to the company website, athletic clothing giant adidas said its first-quarter revs rose 14 percent to €3.8 billion. Operating profit rose 30 percent to €409 million.

Adidas issued a note of caution to its investors: "...commercial irregularities discovered at Reebok India Company, in India, will likely affect the consolidated financial statements of the adidas Group. The currently estimated maximum negative impact could be up to a pre-tax amount of € 125 million."

Group sales for the full year are now expected to grow at a rate approaching 10% on a currency-neutral basis (previously: mid- to high-single-digit). Net income attributable to shareholders is expected to increase at a rate between 12% and 17% (previously: between 10% and 15%).

Shares of Nike are 1.1 percent better on the session, moving as much as 0.9 percent shy of a new 52-week high.

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