Nike Inc. sprinted to the finish line as it ended the 2013 fiscal year with stronger-than-expected fourth-quarter earnings and signs of stabilization in its challenged Chinese business.
A 21.4 percent increase in Nike brand’s North American apparel business in the fourth quarter, to $748 million, lifted the brand’s apparel volume on the continent for the full year to more than $3 billion as its North American sales overall crossed the $10 billion milestone.
Nike’s closely watched future orders metric, reflecting business booked from June through November, rose 8 percent, with the figure for the Greater China market trending up 3 percent for the period, although flat when adjusted for currency fluctuations. Future orders in North America stood at 12 percent.
In the three months ended May 31, net income rose 21.7 percent to $668 million, or 73 cents a diluted share, from $549 million, or 59 cents. Excluding discontinued operations such as the divested Cole Haan and Umbro brands, adjusted EPS was 76 cents, 2 cents above the mark expected, on average, by analysts.
Revenues were up 7.4 percent, to $6.7 billion, from $6.24 billion a year ago, while gross margin was up 110 basis points to 43.9 percent of revenues. Analysts expected slightly lower revenues of about $6.64 billion.
In his final conference call as president of Nike brand before his July 1 retirement, Charlie Denson described North America as the company’s “MVP” for both the quarter and the year. Operating profit in North America during the quarter rose 28.6 percent to $723 million on a 12 percent increase in revenues to $2.71 billion.
Sales ticked up slightly in China during the quarter, up 0.3 percent to $669 million, blunting a sales decline for the year that came in at 3.4 percent, to $2.45 billion. Similarly, a 2 percent decline in quarterly operating profit in China, to $242 million, was better than the 11.2 percent decline for the year, to $809 million.
Donald Blair, chief financial officer, pointed out that revenue in China on a currency-neutral basis was down 1 percent in the quarter “as double-digit growth in performance running and basketball was offset by declines in other categories,” including sportswear.
“The most critical step in returning this market to health is creating a more compelling, productive and profitable retail marketplace,” he added. “As Charlie noted, we’re seeing some encouraging signs.”
For the full year, net income was up 11.8 percent to $2.49 billion, or $2.71 a diluted share, while revenues expanded 8.5 percent to $25.31 billion.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)