Nike "laid another quarter of declining sales and
earnings in part at the feet" of the NBA lockout, according
to Jeff Manning of the Portland OREGONIAN, who writes that
Nike execs "repeatedly referred to the lack of an NBA season
as a leading factor in limp" demand for its products. Nike
Chair Phil Knight: "If we were a fashion company, which
we're not, the runways of Paris and Milan would be important
to us. What the NBA lockout means is that we've lost one of
our key runways." Gruntal & Co. analyst Michael Conn, who
"agreed" that the lockout "hit Nike hard": "They are selling
fewer marquee basketball shoes like the Air Jordan because
of the lockout." Nike's revenues declined 15% to $665.9M,
and its earnings of $68.9M, or $0.24 per share, on sales of
$1.91B, were down from $141.1M, or $0.48 a share, on sales
of $2.26B, in the same quarter last year. But the earnings
results were "higher-than-expected," as analysts "lauded"
Nike's efforts to control costs and reduce inventory. Dir
of Corporate Communications Lee Weinstein said that Nike "is
hoping for growth by the fall, but even that depends on 'a
positive retail environment.'" U.S. footwear future orders
also declined 3.6% (Portland OREGONIAN, 12/18).
