Q4 profit for Nike drops 30 percent
Nike (NYSE: NKE) said its fourth-quarter profit dipped on charges tied to its workforce reduction and other restructuring charges.
For the quarter ended May 31, net income was down 30 percent to $341.4 million, or $0.70 per share, versus $490.5 million, or $0.98 per share, last year.
Nike's revenue fell 7 percent to $4.7 billion for the quarter.
The company said the most recent results included a nearly $200 million pre-tax charge related to reducing its workforce by 5 percent, which resulted in 1,750 jobs cut. Excluding special items, it earned $0.99 per share for the quarter.
During the fourth quarter, U.S. revenues decreased 2 percent to $1.6 billion. Footwear increased 2 percent to $1.2 billion, apparel revenues decreased 15 percent to $379.8 million and equipment revenues were up 2 percent to $85.5 million. U.S. pre-tax income declined 5 percent to $375.7 million.
Revenue for the EMEA region was down 19 percent to $1.2 billion, and flat for the Asia Pacific region at $833.1 million. The Americas region decreased 3 percent to $299.0 million.
Additionally, Nike said orders for product to be delivered June through November are 12 percent lower than orders reported in the same period last year.
--Compiled by Wendy Geister
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