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NIKE SEES 20% DECREASE IN EARNINGS FOR SECOND QUARTER
Published December 19, 1997
Nike yesterday reported a net income for the 2Q ended November 30 of $141M, or $.48/share, compared to $176.9M, or $.60/share a year ago. Revenues increased 7% to $2.26B from $2.11B last year. In the U.S., athletic footwear revenues declined 3% to $787.6M, compared to $814.9M (Nike). REAX: Nike said that "a world-wide slowdown in demand for its footwear and apparel, especially in Asia, broke its three-year streak of earnings gains," driving down its earnings by 20% "and promising to depress revenue and earnings for the next two quarters," according to Bill Richards of the WALL STREET JOURNAL. Analysts had projected that Nike would report earnings of $.55/share. Nike also said that worldwide future orders, set for delivery between December and April, fell 1% to $4.2B world-wide. Nike said the slowdown was due to a mix of order cancellations in the U.S. and Asia, inflated inventories and "problems" in the Asian markets (WALL STREET JOURNAL, 12/19).