Sector Snap: Sporting goods companies rally

NEW YORK (AP) — Sporting-goods stocks rose on Friday following positive earnings reports from two of the sector's bellwethers.

Late Thursday, Nike Inc. reported 15 percent growth in its fiscal first-quarter profit, reflecting demand in nearly every market worldwide. The results beat expectations. Upcoming events like the NCAA basketball tournament and the Olympics should continue to drive growth the rest of the year, the Beaverton, Ore., company said.

"Nike shows the energy of a teenager, despite its maturity," analyst Sam Poser of Sterne Agee noted. He boosted his profit estimates and price target on the stock, which he rates a "Buy."

Kate McShane of Citi Investment Research also rates Nike "Buy" and said results show people are not resisting price increases, which could lead to higher-than-expected revenue growth.

Nike's stock rose $4.73, or 5.6 percent, to $88.91 in afternoon trading. The stock has traded between $69.43 and $94.23 over the past 52 weeks.

Elsewhere, The Finish Line Inc., an Indianapolis-based chain of 646 stores, reported that its fiscal second-quarter net income grew 24 percent, helped by strong sales in stores open at least a year, a key metric of a retailer's health. Further, sales so far in September to date have kept up the pace, the company said.

Jefferies analyst Taposh Bari wrote in a research note, "This is an extremely strong figure in light of the macro concerns, negative mall traffic and much tougher comparisons." The analyst added that the strong back-to-school season "creates a positive bias" for holiday sales.

The Finish Line stock rose $1.72, or 9.3 percent, to $20.15, closer to the high end of its 52-week range of $13.69 to $23.64.

Results from both companies reassured investors about the sporting goods sector and shares across the sector rose.

Cabela's Inc. shares rose $1.28, or 6.4 percent, to $21.23 during midday trading. The stock has traded between $17.36 and $32.37 over the past year.

Dick's Sporting Goods Inc. shares rose $1.68, or 5.1 percent, to $34.69. The stock has traded between $26.98 and $42.97 over the past 52 weeks.

Hibbett Sports Inc. shares rose 63 cents to $34.07.

Big 5 Sporting Goods Corp. shares rose 33 cents, or 5.6 percent, to $6.24, still near the low end of its trading range of $5.80 to $15.96 over the past year.

Deckers Outdoor Corp. shares rose $5.20, or 5.5 percent, to $99.80. The stock has traded between $45.55 and $105.83 during the past 52 weeks.

Under Armour Inc. shares rose $2.13, or 3 percent, to $72.65. The stock has traded between $42.93 and $82.95 over the past year.

Lululemon Athletica Inc. shares rose $1.83, or 3.4 percent, to $56.06, toward the high end of its 52-week trading range of $21.25 to $64.49.