Futures orders for Nike brand decline

25 Jun '09

5 min read

By region, futures orders for the U.S. were down 4 percent; EMEA (which includes Europe, the Middle East and Africa) declined 24 percent; Asia Pacific decreased 5 percent; and the Americas dropped 7 percent. Excluding currency changes, futures orders would have declined 11 percent in EMEA, decreased 3 percent in Asia Pacific and increased 15 percent in the Americas region.

Regional Highlights
U.S.
During the fourth quarter, U.S. revenues decreased 2 percent to $1.6 billion. Footwear increased 2 percent to $1.2 billion, apparel revenues decreased 15 percent to $379.8 million and equipment revenues were up 2 percent to $85.5 million. Apparel revenue was down significantly compared to the prior year due to challenging market conditions and a strategic decision to optimize the product assortment. U.S. pre-tax income declined 5 percent to $375.7 million.

For the full fiscal year, U.S. revenues were up 2 percent to $6.5 billion. Footwear revenues increased 5 percent to $4.6 billion, apparel revenues were down 5 percent to $1.7 billion and equipment revenues declined 4 percent to $327.7 million. U.S. pre-tax income decreased 5 percent to $1.3 billion for the fiscal year.

EMEA
Fourth quarter revenue for the EMEA region was down 19 percent to $1.2 billion. Excluding currency changes, revenue was down 3 percent. Footwear revenue decreased 13 percent to $772.2 million, apparel revenue was down 28 percent to $383.9 million and equipment revenue declined 25 percent to $85.3 million due to the negative impact of currency changes and tough prior year comparisons, which included product sales for the 2008 European Championships. Fourth quarter pre-tax income decreased 3 percent to $321.1 million.

Full fiscal year EMEA revenue was down 2 percent to $5.5 billion. Excluding currency changes, revenue for the period was flat to last year. Footwear revenue was up 1 percent to $3.1 billion, apparel revenue decreased 5 percent to $2.0 billion and equipment revenue was down 6 percent to $405.3 million. European fiscal year pre-tax income was up 3 percent to $1.3 billion.

Asia Pacific
Fourth quarter revenue for the Asia Pacific region was flat compared to last year at $833.1 million. Excluding currency changes, revenue grew 3 percent. Footwear revenue was flat with last year at $421.9 million, apparel revenue was up 1 percent to $342.7 million, and equipment revenue was down 1 percent to $68.5 million. Fourth quarter pre-tax income increased 41 percent to $238.2 million mainly driven by lower demand creation spending. Last year's fourth quarter demand creation spending was higher in support of the Olympic Games in Beijing.

For the full fiscal year, Asia Pacific revenue increased 15 percent to $3.3 billion. Excluding currency changes, revenue grew 12 percent. Footwear revenue increased 15 percent to $1.7 billion, apparel revenue grew 16 percent to $1.3 billion and equipment revenue was up 10 percent to $272.6 million. For the fiscal year pre-tax income increased 23 percent to $853.4 million due to higher revenue, lower demand creation spending and better gross margin performance.

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