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.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia