Nike Inc. posted another strong quarter, as earnings gained 12 percent on robust international growth.
The fourth-quarter numbers beat analysts' forecasts, but more modest U.S. growth lowered the stock price of the athleticwear giant in after-hours trading.
For the three months ended May 31, net income for the Beaverton, Ore.-based firm climbed to $490.5 million, or 98 cents a diluted share, from $437.9 million, or 86 cents, in the same year-ago period.
Revenues for the quarter increased 16 percent to $5.1 billion compared with $4.4 billion the previous year.
For fiscal 2008, earnings jumped 26 percent to $1.9 billion, or $3.74 a diluted share, from $1.5 billion, or $2.93, in fiscal 2007. Sales for the year grew 14 percent to $18.6 billion from $16.3 billion last year.
Futures orders from June 2008 to November 2008 increased 11 percent to $8.8 billion, the company's 30th consecutive quarter that futures increased.
The active giant, which is outfitting athletes at the Summer Olympics in Beijing, reported growth across all regions, with revenues rising 39 percent in Asia and 19 percent in Europe. In addition, the weakness of the dollar propelled growth for the business, which is about two-thirds global.
Several regions, including China and the Americas, passed $1 billion in revenues this year. "It's a testament to the potential Nike has in emerging markets," said Mark Parker, Nike Inc. president and chief executive officer.
However, the company said the U.S. saw more modest growth of 4 percent to $1.7 billion for the quarter. Unlike the global markets, which benefited from favorable currency exchange rates, Nike's largest and most mature market continued its trend of more paced growth for the year and quarter, and futures orders were flat.
The company's "other business" sector, which includes Converse Inc., Nike Golf, Cole Haan and Umbro, grew 15 percent to $749.5 million for the fourth quarter. According to Parker, on an after-market earnings call, "the big story continues to be Converse," which experienced 29 percent revenue growth to $2 billion in wholesale revenues for the year.
"Of course, the Nike brand will continue to be the strongest brand in our portfolio," Parker said. "Every region and category showed growth."Nike released its numbers after the stock market closed, and by 6 p.m., the stock price was down 6 percent to $62.15.
“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
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast