NIKE delivers solid sales growth across all geographies

26 Jun '08

5 min read

NIKE Inc reported financial results for the 2008 fiscal year ended May 31, 2008. For the fiscal year, revenues grew 14 percent to $18.6 billion, compared to $16.3 billion last year. Net income increased 26 percent to $1.9 billion, compared to $1.5 billion last year, and diluted earnings per share increased 28 percent to $3.74 versus $2.93 last year. For the fourth quarter, revenues increased 16 percent to $5.1 billion, compared to $4.4 billion for the same period last year.

Fourth quarter net income increased 12 percent to $490.5 million, compared to $437.9 million in the prior year, and diluted earnings per share increased 14 percent to $0.98, versus $0.86 last year. Changes in currency exchange rates increased revenue growth by 5 percentage points for the full year and 7 percentage points for the fourth quarter.

Nike turned in another strong performance in fiscal year 2008. The power and strength of the Nike brand as well as the depth and diversity of the NIKE, Inc. portfolio produced solid sales growth across all geographies and key product platforms, said Mark Parker, President and CEO of NIKE, Inc. By continuing to deliver compelling consumer experiences, backed by strong operational execution, we're confident we can deliver long-term profitable growth and create value for our shareholders.

Going forward we are going to play to those strengths and continue to invest in product innovation, deep brand connections, improved retail presentation, and operational effectiveness. Our focus is on working stronger, leaner and smarter through uncertain macroeconomic conditions to maximize our unique potential as a leader and innovator, Parker continued. As we complete fiscal 2008, we are better positioned than we ever have been.

Futures Orders:
The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from June 2008 through November 2008, totaling $8.8 billion, 11 percent higher than such orders reported for the same period last year. Changes in currency exchange rates increased reported orders growth by 3 percentage points.

By region, futures orders for the U.S. were flat to last year; Europe (which includes the Middle East and Africa) increased 10 percent; Asia Pacific grew 31 percent; and the Americas increased 30 percent. Changes in currency exchange rates increased reported futures orders growth in Europe by 6 percentage points; by 7 percentage points in the Asia Pacific region; and by 1 percentage point in the Americas region.

Regional Highlights:

U.S.:
During the fourth quarter, U.S. revenues increased 4 percent to $1.7 billion versus $1.6 billion for the same period last year. Footwear revenues increased 6 percent to $1.1 billion. Apparel revenues increased 2 percent to $447.9 million. Equipment revenues decreased 15 percent to $78.2 million. U.S. pre-tax income declined 10 percent to $390.7 million.

For the full fiscalyear, U.S. revenues were up 4 percent to $6.4 billion. Footwear revenues increased 6 percent to $4.3 billion, apparel revenues grew 2 percent to $1.7 billion and equipment revenues decreased 5 percent to $306.1 million. U.S. pre-tax income increased 2 percent to $1.4 billion for the fiscal year.

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