Nike's "gradual recovery from last year's painful
downtown continued in its third quarter" as the company
reported a 76% improvement in earnings and "the first
increase in U.S. sales in five quarters," according to Jeff
Manning of the Portland OREGONIAN. Nike Chair Phil Knight
called it "a rebound in slow motion. ... We continue to
operate in a world of uncertainty, but a lot of the trends
are headed in a positive direction." Knight gave "main
credit" for Nike's improved position to its footwear
designers and developers. An "improved" offering of shoes
led to a 4% jump in quarter sales, from $800.4M to $828.5M,
in Nike's "key U.S. footwear market." Manning: "With the
exception of Latin America, Nike's position seems to be
improving all over the globe" (OREGONIAN, 3/19). The WALL
STREET JOURNAL's David Hamilton reports that Nike posted a
70% increase in profit for the fiscal third quarter ended
February 28, "sprinting past analysts' estimates, thanks to
cost-cutting efforts," but revenue "continued to shrink,
suggesting the company isn't beyond its recent troubles."
Total revenue dropped 2% to $2.18B from $2.22B a year ago,
as sales were "particularly bad" in the Asia-Pacific region.
Nike's futures orders of $3.8B are also down 4% from the
year-earlier period (WALL STREET JOURNAL, 3/19).
