Fitness financials: Nike’s Q2 earnings up 22 percent, plus Finish Line

Nike’s second-quarter net income rose 22 percent due to strong sales, tight inventory control and improved margins from selling more goods at full price, and The Finish Line said it posted an 8.7-percent increase in third-quarter revenue.
Author:
Publish date:

Nike’s Q2 earnings up 22 percent

Strong sales, tight inventory control and improved margins from selling more goods at full price helped drive Nike’s (NYSE: NKE) second-quarter net income up 22 percent, the company reported.

It earned $457 million, or $0.94 per share, for the quarter ended Nov. 30, compared to $375 million, or $0.76 per share, a year earlier.

The company's revenue increased 10 percent to $4.8 billion.

Gross margins improved 80 basis points to 45.3 percent.

Selling and administrative expenses were up 9 percent to $1.6 billion mainly due to operating overhead, which increased 14 percent to $1.0 billion.

Futures orders, scheduled for delivery from December 2010 through April 2011, totaled $7.7 billion -- 11 percent higher than orders reported for the same period last year.

Finish Line’s Q3 sales rise

The Finish Line (Nasdaq: FINL) said it posted an 8.7-percent increase in third-quarter revenue.

For the quarter ended Nov. 27, net sales increased to $260.9 million compared to $240.1 million one year ago.

Comparable store net sales increased 10.1 percent in the third quarter compared to an increase of 1.7 percent a year ago.

Income from continuing operations was $4.1 million, or $0.08 per diluted share, compared to $6.5 million or $0.12 per diluted share, a year ago.

Last year’s figure included a one-time $6.5 million tax benefit Finish Line recorded in the third quarter of last year. Without the tax benefit, third quarter income was $16,000.

Merchandise inventories increased by 10.4 percent to $262.2 million at the end of the quarter compared to $237.5 million a year ago.

--Compiled by Wendy Geister

For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.

Related