Nike’s Q4 net income up on higher revenue
Nike (NYSE: NKE) said higher sales and better margins helped its fourth-quarter net income jump 53 percent from a year earlier, when it recorded a major restructuring charge.
Its net income was $522 million, or $1.06 per share, for the quarter that ended May 31, compared to $341.4 million, or $0.70 per share, a year earlier.
Excluding the restructuring charge from last year's fourth quarter, Nike's net income grew 7 percent.
Its quarterly revenue rose 8 percent to $5.1 billion, up from $4.7 billion a year ago. But revenue rose just 4 percent, excluding currency fluctuations.
Nike reported strong sales in its international market and a solid performance from its array of brands. Its subsidiaries, which include Cole Haan, Converse, Hurley International, Nike Golf and Umbro, had strong quarterly earnings growth, with earnings before interest and taxes climbing 71 percent to a record $73 million on a 9 percent increase in sales to $714 million.
The company also reported $8.8 billion in worldwide futures orders for Nike brand products scheduled for delivery from June through November, a 7 percent increase from the same period last year.
Nearly all of the growth in futures orders comes from China and the emerging markets category, where orders grew 19 percent and 30 percent, respectively. Other than an 8 percent increase in North American futures orders, every other geographic category has ordered less product, including a 17 percent decline in Japan.
Also, Nike reported that it repurchased nearly 2.9 million shares during the quarter.
--Compiled by Wendy Geister
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