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Nike reports revenue up 6% to $4.6 bn
18 Dec '08
3 min read
NIKE Inc., announced financial results for its fiscal 2009 second quarter ended November 30, 2008. Revenue grew 6 percent to $4.6 billion, compared to $4.3 billion for the same period last year. Changes in currency exchange rates increased revenue growth by 1 percentage point for the quarter.
Second quarter net income increased 9 percent to $391.0 million, compared to $359.4 million in the prior year. Diluted earnings per share increased 13 percent to $0.80, versus $0.71 last year.
"Our second quarter results demonstrate the power of the Nike brand and the diversity of the Nike, Inc. portfolio," said Mark Parker, NIKE, Inc. President and CEO. "In challenging times like these it's especially important to stay focused on what we do best - delivering the most innovative and relevant product, strengthening our relationship with consumers and driving excellence into every area of our business. That's how we continue to lead the industry, take market share from competitors and grow our business."*
Parker concluded, "I see the current state of our industry and the world as an incredible opportunity for Nike to be a better and stronger leader, and we're going to seize that opportunity."*
Futures Orders
The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from December 2008 through April 2009, totaling $6.7 billion, 1 percent lower than such orders reported for the same period last year. Excluding the effect of changes in foreign currency exchange rates, reported orders grew 6 percent.*
By region, futures orders for the U.S. were up 6 percent; EMEA (which includes Europe, the Middle East and Africa) decreased 13 percent; Asia Pacific increased 11 percent and the Americas grew 6 percent. By region, changes in currency exchange rates decreased reported futures orders growth by 12 percentage points in Europe; by 1 percentage point in Asia Pacific; and by 20 percentage points in the Americas region.
Regional Highlights
U.S.
During the second quarter, U.S. revenues decreased 1 percent to $1.51 billion versus $1.53 billion for same period last year. U.S. footwear revenues increased 1 percent to $993.5 million. Apparel revenues decreased 3 percent to $449.8 million. Equipment revenues decreased 17 percent to $70.1 million. U.S. pre-tax income decreased 18 percent to $253.3 million due to lower gross margins and higher selling and administrative expenses, primarily related to Nike-owned retail expansion.
Europe
Second quarter revenues for the European region grew 6 percent to $1.3 billion from $1.2 billion for the same period last year. Changes in currency exchange rates increased revenue growth by 2 percentage points. Footwear revenues increased 6 percent to $688.3 million. Apparel revenues grew by 7 percent to $521.6 million and equipment revenues increased 1 percent to $96.3 million. Pre-tax income increased 19 percent to $276.5 million.
Second quarter net income increased 9 percent to $391.0 million, compared to $359.4 million in the prior year. Diluted earnings per share increased 13 percent to $0.80, versus $0.71 last year.
"Our second quarter results demonstrate the power of the Nike brand and the diversity of the Nike, Inc. portfolio," said Mark Parker, NIKE, Inc. President and CEO. "In challenging times like these it's especially important to stay focused on what we do best - delivering the most innovative and relevant product, strengthening our relationship with consumers and driving excellence into every area of our business. That's how we continue to lead the industry, take market share from competitors and grow our business."*
Parker concluded, "I see the current state of our industry and the world as an incredible opportunity for Nike to be a better and stronger leader, and we're going to seize that opportunity."*
Futures Orders
The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from December 2008 through April 2009, totaling $6.7 billion, 1 percent lower than such orders reported for the same period last year. Excluding the effect of changes in foreign currency exchange rates, reported orders grew 6 percent.*
By region, futures orders for the U.S. were up 6 percent; EMEA (which includes Europe, the Middle East and Africa) decreased 13 percent; Asia Pacific increased 11 percent and the Americas grew 6 percent. By region, changes in currency exchange rates decreased reported futures orders growth by 12 percentage points in Europe; by 1 percentage point in Asia Pacific; and by 20 percentage points in the Americas region.
Regional Highlights
U.S.
During the second quarter, U.S. revenues decreased 1 percent to $1.51 billion versus $1.53 billion for same period last year. U.S. footwear revenues increased 1 percent to $993.5 million. Apparel revenues decreased 3 percent to $449.8 million. Equipment revenues decreased 17 percent to $70.1 million. U.S. pre-tax income decreased 18 percent to $253.3 million due to lower gross margins and higher selling and administrative expenses, primarily related to Nike-owned retail expansion.
Europe
Second quarter revenues for the European region grew 6 percent to $1.3 billion from $1.2 billion for the same period last year. Changes in currency exchange rates increased revenue growth by 2 percentage points. Footwear revenues increased 6 percent to $688.3 million. Apparel revenues grew by 7 percent to $521.6 million and equipment revenues increased 1 percent to $96.3 million. Pre-tax income increased 19 percent to $276.5 million.
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