Nike saw a 4.8% increase in Q4 sales "though continued pressure from a stronger dollar weighed on revenue growth and future orders," according to Germano & Stynes of the WALL STREET JOURNAL. Nike "derives most of its income from North America, but more than half of its sales are further afield, where economic and foreign-exchange pressures weighed on its performance." Worldwide orders of Nike apparel and footwear for delivery from June through November "grew 2% from a year earlier, including currency changes." That is "well below the 11% increase that the company reported for the year-earlier period but unchanged from the last quarter." Excluding currency fluctuations, future orders "rose 13% from a year ago." Revenue rose to $7.78B in the three months ended May 31, from $7.43B a year earlier. Excluding the impact of a "stronger dollar, sales improved 13%." Nike overall "reported a 24% increase in profit" to $865M as tax costs "fell and margins improved" (WALL STREET JOURNAL, 6/26).
SHOE MONEY TONIGHT: REUTERS' Ramkumar Iyer reported Nike's higher-margin signature shoe lines for Michael Jordan, LeBron James and Kobe Bryant have been "especially popular" in the U.S., making it the company's "fastest growing footwear business." Sales of running shoes, Nike's biggest footwear business, "rose in the quarter, easing concerns of slowing demand." Nike said that sales of high-priced merch and growth in its direct-to-consumer business "helped boost gross margins" (REUTERS, 6/25). In Portland, Allan Brettman notes the company recorded $30.6B in revenue for FY '15, a 14% increase "over last year" (Portland OREGONIAN, 6/26). At presstime, shares of Nike were trading at $109.47 per share, up 4% from the close of business on Thursday. The stock also hit an all-time high on Friday (THE DAILY).
