Nike yesterday posted a fiscal fourth-quarter loss of
$67.7M, or $0.23 a share, "its first loss in more than 13
years," according to Bill Richards of the WALL STREET
JOURNAL. For the year-earlier period, Nike reported net
income of $155.8M, or $0.52 a diluted share. Nike last
reported a losing quarter in February '85. Revenue for the
quarter ended May 31 fell 3% to $2.31B from $2.37B the year
before. Nike said, however, that excluding a $130M
restructuring charge, it earned $11.8M, or $0.04 per share.
Shares in Nike closed yesterday at $48.6875, off 1.1%, and
fell further to $48 in "light after-hours trading." In
speaking to analysts, Nike Chair Phil Knight said that the
Asian turnaround the company "had been hoping for hasn't
occurred," and that Nike "was disappointed" with efforts to
boost demand for its products in Asia and the U.S. Knight
said that Nike had seen several "pockets of sunshine" in the
past month, including a boost in demand in Europe from its
World Cup marketing. Knight: "Historically, we have
followed these difficult periods with strong rebounds that
have surprised the marketplace, industry analysts, and, to a
degree, even ourselves" (WALL STREET JOURNAL, 7/1).
REASON FOR CONCERN? In Portland, Jeff Manning writes,
"Nike's numbers showed that there are plenty of reasons for
caution." Company execs "conceded" that revenue for the FY
beginning today likely will fall to less than '98's "record"
$9.6B, as "sluggish sales" have led retailers to cut orders
for Nike product "more than expected" (OREGONIAN, 7/1).
CNBC's Joe Kernan said that future Nike orders for the
upcoming six months "are off" 54% are and continuing to fall
in the Asian Pacific. U.S. futures are also down 11%, while
worldwide, total orders are down about 13% ("The Edge,"
CNBC, 6/30). "NBR"'s Paul Kangas said the Asian financial
crisis "continues to scuff Nike's outlook" ("NBR," 6/30).
