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Nike delivers excellent operating results
19 Mar '09
5 min read
Regional Highlights
U.S.
During the third quarter, U.S. revenues increased 3 percent to $1.6 billion compared to the same period last year. U.S. footwear revenues increased 8 percent to $1.2 billion. Apparel revenues decreased 9 percent to $370.4 million. Equipment revenues decreased 2 percent to $74.4 million. Pre-tax income increased 2 percent to $357.0 million.
EMEA
Third quarter revenues for the EMEA region decreased 14 percent to $1.2 billion compared to $1.4 billion for the same period last year. Excluding changes in currency exchange rates revenue would have decreased 4 percent. Footwear revenues decreased 12 percent to $693.8 million. Apparel revenues decreased 17 percent to $415.0 million and equipment revenues decreased 24 percent to $77.1 million. Pre-tax income decreased 18 percent to $276.9 million.
Asia Pacific
In the third quarter, revenues in the Asia Pacific region grew 8 percent to $806.9 million compared to $749.3 million a year ago. Changes in currency exchange rates increased revenue growth by 1 percentage point. Footwear revenues were up 10 percent to $451.1 million, apparel revenues increased 6 percent to $290 million and equipment revenues grew 1 percent to $65.8 million. Pre-tax income increased 11 percent to $213.7 million.
Americas
Revenues in the Americas region decreased 5 percent to $245.4 million from $257.2 million for the same quarter last year. Excluding changes in currency exchange rates, revenue would have increased 15 percent. Footwear revenues decreased 4 percent to $171.3 million, apparel revenues decreased 1 percent to $54.3 million and equipment revenues decreased 19 percent to $19.8 million. Pre-tax income was down 22 percent to $41.1 million mainly due to lower gross margins and higher demand creation spending.
Other Businesses
For the third quarter, revenue for the Other businesses, which include Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro Ltd, increased 1 percent to $592.2 million compared to $587.4 million last year with the group posting a third quarter pre-tax loss of $344.1 million versus pretax income of $106.1 million for the same period last year.
Due to changes in the Company's affiliate brands portfolio and the inclusion of the impairment charge, current year amounts are not directly comparable to the prior year. In the third quarter of fiscal 2008 the Company's Other business segment included Converse Inc., NIKE Golf, Cole Haan, Hurley International LLC, NIKE Bauer Hockey, and the Starter Brand. Following a corporate strategic review the Starter Brand and NIKE Bauer Hockey were sold in the third and fourth quarter of fiscal 2008, respectively, while Umbro was acquired in the fourth quarter of fiscal 2008. For the continuing Other businesses (Converse Inc., NIKE Golf, Cole Haan and Hurley International LLC) third quarter revenues grew 5 percent while pretax income declined 21 percent. Pretax income was less than the prior year, mainly due to lower profits at Cole Haan and NIKE Golf, reflecting difficult conditions in these market sectors.
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U.S.
During the third quarter, U.S. revenues increased 3 percent to $1.6 billion compared to the same period last year. U.S. footwear revenues increased 8 percent to $1.2 billion. Apparel revenues decreased 9 percent to $370.4 million. Equipment revenues decreased 2 percent to $74.4 million. Pre-tax income increased 2 percent to $357.0 million.
EMEA
Third quarter revenues for the EMEA region decreased 14 percent to $1.2 billion compared to $1.4 billion for the same period last year. Excluding changes in currency exchange rates revenue would have decreased 4 percent. Footwear revenues decreased 12 percent to $693.8 million. Apparel revenues decreased 17 percent to $415.0 million and equipment revenues decreased 24 percent to $77.1 million. Pre-tax income decreased 18 percent to $276.9 million.
Asia Pacific
In the third quarter, revenues in the Asia Pacific region grew 8 percent to $806.9 million compared to $749.3 million a year ago. Changes in currency exchange rates increased revenue growth by 1 percentage point. Footwear revenues were up 10 percent to $451.1 million, apparel revenues increased 6 percent to $290 million and equipment revenues grew 1 percent to $65.8 million. Pre-tax income increased 11 percent to $213.7 million.
Americas
Revenues in the Americas region decreased 5 percent to $245.4 million from $257.2 million for the same quarter last year. Excluding changes in currency exchange rates, revenue would have increased 15 percent. Footwear revenues decreased 4 percent to $171.3 million, apparel revenues decreased 1 percent to $54.3 million and equipment revenues decreased 19 percent to $19.8 million. Pre-tax income was down 22 percent to $41.1 million mainly due to lower gross margins and higher demand creation spending.
Other Businesses
For the third quarter, revenue for the Other businesses, which include Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro Ltd, increased 1 percent to $592.2 million compared to $587.4 million last year with the group posting a third quarter pre-tax loss of $344.1 million versus pretax income of $106.1 million for the same period last year.
Due to changes in the Company's affiliate brands portfolio and the inclusion of the impairment charge, current year amounts are not directly comparable to the prior year. In the third quarter of fiscal 2008 the Company's Other business segment included Converse Inc., NIKE Golf, Cole Haan, Hurley International LLC, NIKE Bauer Hockey, and the Starter Brand. Following a corporate strategic review the Starter Brand and NIKE Bauer Hockey were sold in the third and fourth quarter of fiscal 2008, respectively, while Umbro was acquired in the fourth quarter of fiscal 2008. For the continuing Other businesses (Converse Inc., NIKE Golf, Cole Haan and Hurley International LLC) third quarter revenues grew 5 percent while pretax income declined 21 percent. Pretax income was less than the prior year, mainly due to lower profits at Cole Haan and NIKE Golf, reflecting difficult conditions in these market sectors.
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NIKE Inc
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