Nike Inc. said Wednesday its fourth-quarter net income fell more than 30 percent, eroded by a 16 percent decline in worldwide apparel sales and unfavorable currency fluctuation.
In the three months ended May 31, the Beaverton, Ore.-based athletic footwear and apparel giant recorded a 30.4 percent decline in net income to $341.4 million, or 70 cents a diluted share, from $490.5 million, or 98 cents a share, a year ago. Excluding costs for restructuring and other charges, earnings per share totaled 99 cents in the quarter, 3 cents above the consensus estimate reported by Yahoo Finance.
In a move to trim costs and streamline operations, the company cut about 1,750 positions, 5 percent of its global workforce, during the quarter.
Sales in the three months fell 7.4 percent to $4.71 billion from $5.09 billion in 2008. Worldwide sales of footwear, the company’s largest business, slid 3 percent, to $2.58 billion. Apparel sales were $1.17 billion during the period, a 16 percent fall.
Nike said net revenues would have been “essentially flat” without the effects of currency shifts.
Mark Parker, president and chief executive officer, said on a call with analysts that Nike is targeting modest growth for the new fiscal year but expects factors such as more currency fluctuation to weigh on gross margins.
“I believe the markets will not be driven by the frugal consumer, but by the focused consumer,” he said. “Innovation does not stop at the $100 price point. We’re busy creating sharper and more compelling products up and down the price ladder, and that’s especially important given the times we’re in.”
Footwear and apparel ordered for delivery from June through November totaled $7.8 billion, down 12 percent against last year.
For all of fiscal 2009, Nike’s profits slid 21.1 percent to $1.49 billion, or $3.03 a share, from $1.88 billion, or $3.74 a share, in the previous year. Sales grew 2.9 percent to $19.18 billion from $18.63 billion. Apparel sales inched up 0.2 percent to $5.24 billion and accounted for 31.5 percent of the total.
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)
Breaking News: @hedislimane joins @celine as its new artistic, creative and image director. One of fashion’s preeminent image-makers and trendsetters, Slimane is to join the LVMH brand on Feb. 1 and unveil his first fashion proposition for men and women next September during Paris Fashion Week. It marks a major homecoming for Slimane, who cemented his reputation – and influenced men’s tailoring for more than a decade – as the designer of Dior Homme between 2000 and 2007. He went on to reinvent and ignite the house of Yves Saint Laurent, which he rechristened Saint Laurent, between 2012 and 2016 – all the while maintaining a close relationship with the Arnault family, which controls LVMH and Dior. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
“Personally I believe the Eighties have been the richest and more vivacious period for international fashion,” Giorgio Armani said when asked what his favorite decade of fashion is. It was a moment of disruption and experimentation and only thinking back to the first years of that decade is always an emotion for me, for what they have meant to me and my work.” The influence is clear in @giorgioarmani spring 2018 collection, pictured here, which was full of bright colors and unexpected prints. Read more about which decades designers loved most on WWD.com #wwdfashion #wwddecades (📷: @aitorrosasphoto)
For Lady Gaga’s only Italian show on her “Joanne World Tour,” the singer wore a range of @versace_official outfits. The standout piece: this custom-made bodysuit inspired by the brand’s spring 2018 collection. #wwdfashion (RG: @ladygaga)
@_camillaruth_ is expanding on the wellness-craze concept with @westbourne – a new NYC restaurant that’s both a healthy-minded café as well as a business that gives back to the community. Marcus works with the Robin Hood foundation to give back to The Door, a non-profit providing youth development services, and also hires employees through The Door. Read our full interview with Marcus on giving back through food on WWD.com. #wwdeye (📷: @lexieblacklock)