Nike Inc. continues to beat the economy, reporting a 9 percent gain in second-quarter earnings after the market closed Wednesday.
This story first appeared in the December 18, 2008 issue of WWD. Subscribe Today.
For the three months ended Nov. 30, Nike’s net income climbed to $391 million, or 80 cents a diluted share, from $359.4 million, or 71 cents, beating analysts’ estimates of 78 cents.
Strong sales overseas helped the Beaverton, Ore.-based active giant overcome weak domestic sales, driving total revenue up 5.8 percent to $4.59 billion from $4.34 billion.
“Our second-quarter results demonstrate the power of the Nike brand and the diversity of the Nike Inc. portfolio,” said Mark Parker, Nike president and chief executive officer.
Going forward, Nike reported futures orders, scheduled for delivery from December 2008 through April 2009, slid 1 percent to $6.7 billion, but excluding changes in foreign currency exchange rates, future orders were up 6 percent.
Nike’s performance varied by region:
• U.S. sales slid 1 percent to $1.51 billion, dragged down by a 17 percent decline in equipment revenues, a 3 percent drop in apparel and 1 percent decline in footwear. Futures for the U.S. are up 6 percent.
• European sales grew 6 percent to $1.3 billion, as apparel sales increased 7 percent, footwear grew 6 percent, equipment rose 1 percent, and currency exchange rate changes boosted revenue by 2 percentage points. Futures, however, are down 13 percent.
• Asia-Pacific sales climbed 22 percent to $821.4 million, with apparel revenues up 23 percent, equipment up 23 percent, footwear up 20 percent, and currency exchange rate changes helping revenues by 5 percentage points. Futures increased 11 percent.
• Americas revenues increased 21 percent to $384.6 million, with footwear up 23 percent, apparel 20 percent and equipment 10 percent, and dragged down 2 percentage points by currency exchange rate changes. Futures are up 6 percent.