SBD/December 21, 2011/Finance

Nike Reports 3% Q2 Profit; Revenues Jump 18% to $5.7B

Nike has improved results for more than a year despite economic uncertainty
Nike yesterday reported a 3% "profit for its second quarter that ended Nov. 30,” according to Allan Brettman of the Portland OREGONIAN. Nike reported net income of $469M and diluted earnings per share increased 6% to $1, reflecting a 4% "decline in the weighted average diluted common shares outstanding.” Revenues increased 18% to $5.7B, up 16% on a currency-neutral basis. Excluding the impacts of changes in foreign currency, Nike experienced "growth in every geography except Japan and in all key categories except Action Sports -- a category that had been the focus of a major campaign launch earlier this year.” Revenues for other businesses “increased 5 percent with minimal impact from changes in currency exchange rates, as growth at Converse more than offset lower revenues at Nike Golf, Cole Haan, Hurley and Umbro.” Worldwide futures orders for Nike Brand athletic footwear and apparel scheduled for delivery from December through next April “totaled $8.9 billion, 13 percent higher than orders reported for the same period last year” (Portland OREGONIAN, 12/21). The WALL STREET JOURNAL’s Kell & Tadena write Nike has posted “improved results for more than a year despite the economic uncertainty in many of its markets.” In North America, Nike's largest market, sales “were up 21% in the latest quarter excluding currency changes, while emerging markets had a 26% sales jump.” Sales “rose 28% in China,” but they “continued to flag in Japan, slipping 7% in the latest quarter” (WALL STREET JOURNAL, 12/21). At presstime, Nike shares were trading at $96.38, up 2.74% from yesterday's close of $93.63 (THE DAILY).
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