High revenues from European and Asian markets helped lift Nike's second quarter during which U.S. revenues and orders were down significantly.
Quarterly revenues for the European region (which includes the Middle East and Africa) grew 35 percent to $781 million. Footwear revenues increased 39 percent to $437 million; apparel revenues grew 29 percent to $295 million; and equipment increased 33 percent to $50 million. Had the dollar remained constant, regional revenues would have increased 25 percent. Quarterly revenues in the Asia Pacific region grew 14 percent to $353 million. Footwear revenues were up 6 percent to $171 million; apparel revenues increased 23 percent to $151 million; and equipment grew 19 percent to $30 million. In constant dollars, regional revenues grew 12 percent. Those stellar numbers offset declines in the United States: U.S. revenues decreased 8 percent to $1.0 billion, compared to $1.1 billion in the same period last year. U.S. athletic footwear revenues declined 13 percent to $596 million. Apparel revenues fell 1 percent to $370 million. Equipment revenues decreased 4 percent to $67 million. Futures were also down in the United States (4 percent), while they were up in Europe (9 percent) and Asia Pacific (15 percent)
"Our international businesses continue to show strength as futures orders outside the U.S. increased eight percent. While U.S. orders were down this quarter as we expected, we are pleased with the worldwide strength of our brand and believe that the realignment of our U.S. distribution will only enhance our business and our brand going forward," said Philip H. Knight, chairman and CEO.