Business NEWS

Nike 2Q profit falls 4% but future orders jump

By Bettina Padurano for CEOWORLD Magazine Updated:December 18, 2009

The world’s leading Footwear, apparel and equipment maker, Nike Inc. (NKE, News, Press Releases: 74.66 +3.78 +5.33%, yield: 1.47, cap: 36.393B, 1yr target: 72.23) said its revenue slipped 4 per cent to $4.4 billion during the fiscal second quarter as compared with $4.6 billion in the same quarter of last year.

Nike’s net income for the quarter declined 4% to $375.4 million from $391.0 million in the comparable period a year ago. Earnings on a per share basis fell 5% to $0.76 from $0.80 in the prior-year quarter.

Nike is expected to report Q2 EPS of $0.71 on revs of $4.4 billion. For Q110, Nike posted an EPS of $1.04 and revs of $4.9 billion. For Q209, Nike posted revs of $4.6 billion and an EPS of $0.80. In both instances, Nike beat on the bottom, but not the top.

However, Nike said that future orders jumped slightly. Global future orders grew 4 per cent to $7billion, however dipped 1 per cent excluding currency changes. Future orders indicate growth based on estimates of product orders.

Nike’s much of second quarter revenue was generated by the emerging markets. Revenue from the emerging markets increased 8 per cent to $555 million.

Nike’s sales were down in all regions, except emerging markets, which gained 8%. Revenue fell the most in Central and Eastern Europe—24%—followed by 6% in Western Europe. U.S. revenue slid 4% to $1.5 billion.

NIKE, Inc. (NIKE) is engaged in the design, development and worldwide marketing of footwear, apparel, equipment, and accessory products. NIKE sells athletic footwear and athletic apparel. It sells its products to retail accounts, through NIKE-owned retail, including stores and Internet sales, and through a mix of independent distributors and licensees, in over 170 countries around the world.

Running, training, basketball, soccer, sport-inspired casual shoes, and Kid’s shoes are its footwear categories. It also markets shoes designed for aquatic activities, baseball, cheerleading, football, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and other athletic and recreational uses. It sells a line of performance equipment under the NIKE brand name, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment, golf clubs, and other equipment designed for sports activities.

Like this article! ‹ Bolder measures needed to boost the real economy, EESC – European Economic and Social Committee KB Home Chief Financial Officer/CFO Raymond P. Silcock Exits Company, investigated by the Securities and Exchange Commission ›
Share this Post: Get It Delivered To Your Inbox