LOUISVILLE, Ky - Net income grew to $214-million (U.S.), or 72 cents per share, for the three months ended Sept. 3 from $185-million, or 61 cents per share, a year ago.

Revenue rose three per cent to $2.24-billion from $2.18-billion last year, with U.S. sales at stores open at least a year increasing four per cent.

Analysts surveyed by Thomson Financial, on average, expected earnings per share of 70 cents on revenue of $2.24-billion.

More than a third of the company's profit came from its rapidly growing China division. Profit rose 31 per cent to $85-million, on an 18 per cent revenue increase to $360-million.

In comparison, U.S. profits dipped four per cent to $189-million, as revenue increased two per cent from a year ago, to $1.39-billion.

The company forecast fourth-quarter earnings of 78 cents per share, excluding charges, and raised its earnings-per-share estimate for the year by 2 cents, to $2.64, excluding charges. For 2006, the company estimates earnings-per-share growth of 10 per cent.

Analysts estimate earnings of 78 cents per share in the fourth quarter, $2.63 for the year, and $2.89 in 2006.

Source:Globe and Mail