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.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)