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.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@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)