Affected by the absence of a onetime tax benefit, Nike Inc. saw first-quarter net earnings slide 10 percent, but still handily beat Wall Street expectations.
For the three months ended Aug. 31, the active giant posted net earnings of $510.5 million, or $1.03 a diluted share, compared with $569.7 million, or $1.12, in the prior year. Sales climbed 17 percent to $5.4 billion from $4.7 billion.
The consensus estimate had been 92 cents a diluted share on revenues of $5.2 billion.
Excluding a onetime tax benefit of $105.4 million in last year’s first quarter, net income would have grown, not slid, 10 percent.
Futures orders climbed 10 percent, led by 27 percent increases in the Asia-Pacific and Americas regions. U.S. and European orders grew a more modest 3 percent and 4 percent, respectively. Inventory, however, also grew 14 percent to $2.5 billion at the end of the first quarter.
“We’re not stopping to celebrate, and we aren’t complacent,” Nike Inc. president and chief executive officer Mark Parker said in an after-hours earnings call Wednesday. “We’re just coming off a summer that created tremendous global excitement in sports, and we’re coming into a season of championships, which creates great opportunities going forward.”
The Beaverton, Ore.-based firm saw growth across all regions. Asia-Pacific led the growth with a 36 percent gain to $860.6 million in revenues, followed by 26 a percent gain in the Americas region to $355.7 million. Even the U.S. posted a respectable 8 percent increase to $1.8 billion — a positive sign after growth slowed in Nike’s biggest and most mature market in the last quarter.
As highlights, the company pointed to the fact that retail revenues were up 8 percent, and said its competitive running business was making strides. Nike also highlighted the impact of the Beijing Olympics not only on China’s market, where futures are up nearly 50 percent, but also worldwide.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@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