Fitness financials: adidas’ Q4 net income falls 64 percent, plus Big 5, Costco

adidas said its fourth-quarter net income declined 64 percent, while Big 5 said its Q4 profit jumped 77 percent, and Costco’s Q2 profit rose 25 percent.
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adidas’ Q4 net income falls 64 percent

adidas said its fourth-quarter net income declined 64 percent on effects including rising purchasing costs, currency effects and a drop in demand during the downturn.

The company earned EUR 19 million (USD $25.7 million) this year versus EUR 54 million (USD $73.1 million) in net income during the October-December period of 2008.

Revenue for the fourth quarter of 2009 was steady around EUR 2.5 billion (USD $3.3 billion).

For the whole of 2009, net income fell 62 percent to EUR 245 million (USD $332 million) from EUR 642 million (USD $870 million). Revenue in 2009 fell 6 percent to EUR 10.4 billion (USD $14.0 billion) from EUR 10.8 billion (USD $14.6 billion).

Adidas said it saw a 13-percent revenue increase in Latin America in 2009, while Asian markets other than China saw a 4-percent increase. All other markets -- China, Europe and North America -- reported revenue declines of between 5 percent and 10 percent for the year.

"With no doubt, 2009 was the most difficult year during my time as chief executive," Herbert Hainer said in a statement. "However, we rose to the challenge. Despite a 53-percent decline in operating profit, we generated a 141-percent increase in net cash from operations for a record EUR 1.2 billion (USD $1.6 billion)."

adidas said it expected a slow turnaround in consumer spending in 2010 and only a low to mid-single-digit increase in sales. However, the company forecast some lower operating and interest rate expenses, which should push earnings per share to a level between EUR 1.90 and EUR 2.15 (USD $2.57 and $2.91) from EUR 1.22 (USD $1.65) in 2008.



(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of March 3.)

Big 5 profit jumps 77 percent in Q4

Profit for Big 5 Sporting Goods (Nasdaq: BGFV) jumped 77 percent in the fourth quarter on higher sales and lower interest payments.

It earned $6.4 million, or $0.29 per share, in the three months that ended Jan. 3 -- up from the $3.6 million, or $0.17 per share, it earned a year earlier.

Adjusted profit was $0.32 per share, which excluded one-time legal expenses of $0.03 per share.

Revenue rose 8 percent to $237.6 million from $219.6 million. Same-store sales rose 0.1 percent in the quarter.

For the full year, Big 5's profit rose 57 percent to $21.8 million, or $1.01 per share, from $13.9 million, or $0.64 per share, the year before. Yearly revenue rose 4 percent to $895.5 million.

Looking ahead, the company said it expects first-quarter profit between $0.17 and $0.23 per share.

"We have enjoyed positive sales trends during the first quarter of fiscal 2010 to date, as we have benefited from favorable weather conditions in many of our markets,” said Steven Miller, Big 5’s CEO and chairman, in a statement. “While we are encouraged by the start of our current quarter, we recognize that the economy remains challenging and the uncertainty experienced in the consumer environment over the last few years has continued into 2010.”

Also, the company's board of directors has declared a quarterly cash dividend of $0.05 per share of outstanding common stock, which will be paid on March 22 to stockholders of record as of March 8.

Costco’s Q2 profit climbs

Strong overseas sales growth and increased gasoline prices boosted Costco’s (Nasdaq: COST) revenue in the second quarter, and its profit climbed 25 percent.

For the period ended Feb. 14, its quarterly revenue rose 11 percent to $18.74 billion from $16.84 billion on improved net sales and membership fee growth.

Same-store sales climbed 9 percent, mostly on higher gas prices and the weaker dollar. Taking out those two factors, same-store sales only rose 3 percent.

Costco's same-store sales growth came mostly from its international sales, which climbed 26 percent. The U.S. figure rose 5 percent. Removing higher gas prices and the softer dollar, it said the overseas sales figure climbed 10 percent while U.S. same-store sales rose 2 percent.

The company's earnings grew to $299 million, or $0.67 per share, versus $239 million, or $0.55 per share, a year ago.

Quarterly results included a $0.03-per-share charge related to an employee benefits change that will now allow some unused time off to be paid annually to the worker.

--Compiled by Wendy Geister

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