WME-IMG Acquires eSports Agency FanDuel Quadruples Revenue Generated Whistle Sports Closes Latest Round Of Financing Acushnet Could Go Public By '16 WPP Invests $250M Into Bruin Sports Capital NeuLion Agrees To Buy Streaming Outfit DivX Profits To Drop Sharply For MSG Media Chinese Firm Could Buy Infront Media Nike Reports Relatively Strong Q2 TaylorMade CEO Sharpe Talks About His Plan
Upcoming Conferences and Events
Nike's Q2 Earnings Climb Better-Than-Expected 22%; Revenue Up 10%
Published December 22, 2010
Nike's Q2 earnings "rose a better-than-expected 22%, as the athletic-shoe maker continues to see strong interest in future orders," according to Joan Solsman of the WALL STREET JOURNAL. For the quarter ended Nov. 30, Nike posted a profit of $457M ($0.94 a share), up from $375M ($0.76 a share) for the year-ago period. Revenue increased 10% to $4.84B. Analysts had predicted earnings of $0.88 per share on revenue of $4.81B. Nike's gross margin rose to 45.3% from 44.5%, and the company's sales "rose in all its regions except Western Europe and Japan." In North America, "its largest market, revenue rose 14%, with a 24% climb in emerging markets, continuing Nike's strength there." Worldwide future orders were up 11%, "accelerating a little sequentially from the 10% climb in prior quarter." Nike shares "were down 4%, at $88.62 after hours, retreating from the stock's highest level ever, which it hit during the regular session Tuesday" (WALL STREET JOURNAL, 12/22). In Portland, Erik Siemers reported sales from Nike brands including Converse, Umbro, Nike Golf, Cole Haan and Hurley "collectively grew 13 percent, with each brand recording increases in the quarter." Nike "ended the quarter with $4.8 billion in cash and short-term investments on the books, up 19 percent from last year" (BIZJOURNALS.com, 12/21). Also in Portland, Allan Brettman reports Nike execs, "as they did at the conclusion of the previous fiscal quarter," warned of "bottom-line pressures in freight, production, raw materials and labor, as well as uncertainties in currency markets" (Portland OREGONIAN, 12/22). At presstime, Nike shares were trading at $86.92, down 5.8% from yesterday's close of $92.30 (THE DAILY).
COMPETITIVE BALANCE: adidas AG Chair & CEO Herbert Hainer told German daily newspaper Boersen-Zeitung that his brand "will grow faster than U.S. archrival Nike in 2015." Hainer said that it is "important for the company to aim for sustainable and continuous growth rather than the highest turnover for 2015" (REUTERS, 12/22).