Growth across all regions led Nike Inc. to a 32 percent jump in third-quarter earnings.
This story first appeared in the March 20, 2008 issue of WWD. Subscribe Today.
For the three months ended Feb. 29, net income was $463.8 million, or 92 cents a share, compared with $350.8 million, or 68 cents, last year, the active giant reported Wednesday.
Sales for the quarter grew 16 percent to $4.54 billion from $3.93 billion.
“A year ago we established the goal of reaching $23 billion in revenues by our fiscal year 2011 and outlined our strategy for achieving that goal while continuing to deliver profitable, sustainable growth and outstanding returns to our shareholders,” said Mark Parker, Nike Inc. president and chief executive officer. “Our strong third-quarter results, driven by sales gains across our diversified portfolio of categories, geographies and brands, are a clear indication that our strategy is working and that we’re on track to achieve our financial goals for this fiscal year and beyond.”
Growth in the Asia-Pacific region of 27 percent to $748.3 million led the sales increase, along with Europe’s 23 percent gain, to $1.4 billion. The Americas increased 20 percent as a region to $254.4 million, while U.S. sales rose 5 percent to $1.6 billion.
For the first three quarters of the year, earnings also increased 32 percent to $1.39 billion, or $2.76 a share, from $1.05 billion, or $2.07, for the first nine months of last year.
Sales in the nine-month period were up 13 percent to $13.54 billion from $11.94 billion.
Nike also recorded changes in its “other business” sector, having recently bought Umbro for $285 million, sold its Starter brand for $29 million to Iconix Brand Group Inc. and agreed to sell Bauer Hockey for $200 million to an investor group led by Kohlberg Co. and Canadian businessman W. Graeme Roustan.