- FashionUnited |
Global sports label Nike published the financial results of the third quarter ended 29th February 2008. For the quarter, the revenue grew 16% to $4.5 billion, compared to $3.9 billion for the same period last year. Changes in currency exchange rates increased revenue growth by 6 percentage points for the quarter. Third quarter net income grew 32% to $463.8 million, compared to $350.8 million in the prior year and diluted earnings per share increased 35% to $0.92, versus $0.68 last year.
Mark Parker, Nike, Inc. President and Chief Executive Officer commented: "Over the past twelve months we've taken a number of important strategic steps to strengthen the performance and potential of our portfolio of products and brands, steps we believe create stronger platforms for growth and allow us to connect even deeper with consumers. More than ever, the consumer is at the epicenter of everything we do and delivering the most innovative products and the most exciting consumer experiences is the key to our future growth."
In the US revenues increased with 5% to $1.6 billion versus$1.5 billion for the third quarter of fiscal 2007. US athletic footwear revenues increased 5% to $1.1 billion; apparel revenues increased 10% to $407.8 million; and equipment revenues decreased 12% to $68.7 million. U.S. pre-tax income increased 17% to $347.3 million from $296.4 million a year ago. In Europe the quarter revenues for Nike grew 23% to $1.4 billion from $1.1 billion for the same period last year. Changes in currency exchange rates increased revenue growth by 13 percentage points. Footwear revenues were up 25% to $784.8 million. Apparel revenues increased 21% to $499.5 million and equipment revenues increased 23% to $100.0 million. Pre-tax income increased 31% to $334.3 million. In other regions the third quarter, like the Asia Pacific and the Americas revenues respectively grew 27 % to $748.3 million compared to $589.9 million, and 20% to $254.4 million from $212.5 million compared to a year ago.
Other business revenues grew 15% to $600.9 million from $522.7 million last year in the same period. Include Converse Inc., which designs, markets and distributes athletic footwear, apparel and accessories; NIKE Golf; Cole Haan Holdings, which designs, markets and distributes luxury shoes, handbags, accessories and coats; NIKE Bauer Hockey Corp.; Hurley International LLC, which focuses on youth lifestyle footwear, apparel and accessories; and Exeter Brands Group LLC. Pre-tax income increased 16% to $77.5 million for the quarter. Besides the previous, Nike gained business revenues by completing its sale of the Starter brand to Iconix Brand Group on 17th December 2007 resulting in a gain of $29 million that is included in third quarter other income. The Company also announced on 21st February 2008 it had reached a definitive agreement to sell Bauer Hockey to an investor group led by Kohlberg & Company and Canadian businessman W. Graeme Roustan for $200 million in cash. This transaction is expected to be completed before the end of the fiscal year.
Nike started the year with the positive acquisition of 100% of the shares of Umbro, the leading United Kingdom-based global football brand. On 31st January 31 2008, Nike's £285 million, all-cash offer was approved by Umbro shareholders. The United Kingdom's Office of Fair Trade gave regulatory approval on 6th February 2008 and on 3rd March 2008 the acquisition was completed by Nike's wholly owned subsidiary, NIKE Vapor Ltd.
At quarter end, global inventories stood at $2.4 billion, an increase of 10% from February 28, 2007. Cash and short-term investments were $2.9 billion at the end of the quarter, compared to $2.3 billion last year.
Nike is one of the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities.