Nike Q1 forges ahead on brand portfolio & management
19 Sep '05
2 min read
Oreland based famous footwear seller Nike Inc's reported record results for the first quarter ended August 31, 2005.
Revenue grew eight percent and earnings per diluted share increased 33 percent for the period. The Company reported sales growth across each of its regions and product business units, with particular strength in US footwear in the quarter for both revenues and futures orders.
First quarter revenues increased eight percent to $3.9 billion, compared to $3.6 billion for the same period last year. Net income grew 32 percent to $432.3 million, or $1.61 per diluted share, compared to $326.8 million, or $1.21 per diluted share, for the prior year.
"A strong product pipeline and global management team's ability to consistently execute across brand portfolio drove very strong performance for the first quarter," said William D. Perez, President and Chief Executive Officer. "Company results show continued healthy demand for NIKE product worldwide and they remain optimistic about our ability to meet future goals."
Futures Orders The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from September 2005 through January 2006, totaling $4.9 billion, 11.0 percent higher than such orders reported for the same period last year.Changes in currency exchange rates had no significant impact on this growth.
By region, futures orders for the U.S. increased 12 percent; Europe (which includes the Middle East and Africa) increased four percent; Asia Pacific grew 15 percent; and the Americas increased 32 percent. Changes in currency exchange rates reduced the reported futures orders growth in Europe by two percentage points.Futures orders growth in Asia Pacific was not significantly impacted by changes in currency exchange rates. In the Americas region, three percentage points of the increase were due to changes in currency exchange rates.