Sponsors
Billabong ▼ -0.007 | PPR ▼ -2.95 | American Apparel ▼ -0.050 | The Buckle ▼ -1.08 | Columbia ▼ -0.89 | Deckers Outdoor ▼ -0.55 | Dicks ▼ -0.73 | Foot Locker ▼ -0.20 | Genesco ▼ -1.45 | Iconix Brand Group ▼ -0.50 | Jarden Corp ▼ -1.35 | Nordstrom ▼ -1.05 | Luxottica ▼ -0.58 | Nike ▼ -1.10 | Pacific Sunwear ▼ -0.11 | Skullcandy ▼ -0.24 | Sport Chalet - 0 | Urban Outfitters ▼ -0.76 | VF Corp ▼ -0.31 | Quiksilver ▼ 0.00 | Zumiez ▼ -0.51 | Macys ▼ -1.16 | Tillys ▼ -0.19 |
Readers Say
Executive Edition is a must have
Executive Edition is a must have

Before Shop-Eat-Surf, there were two sites I paid for premium content on. One is Surfline, the other is the Wall Street Journal. One is about all things surf, the other, the best business content site in the world. Shop-eat-surf is the intersection of those two worlds. Shop-Eat-Surf provides everything from coverage of events, people, brands and trends. However, beyond the Executive Edition "wall" is more meaty analysis and interpretation of financial statements, business models and brand philosophies; why certain brands and companies are succeeding, where others aren't. The Executive Edition is a must have read if the business of surf and action sports are on your radar screen.

- By Jeff Berg, Co-owner, Surfline
The first thing I look at
The first thing I look at

I find Shop-Eat-Surf to be a very useful and informative site that I enjoy browsing daily. Shop-Eat-Surf is the first thing I look at every morning to keep up-to-date on the latest talk, events, and happenings in the industry. I must say I am a fan of Shop-Eat-Surf.

- By Bobby Abdel, Partner, Jack's Surfboards
Industry Insight

CFA, WELLS FARGO: Invitation to next "Crystal Ball" breakfast session, "Private Label vs Branded Manufacturing."

STOKES ME: SIMA Humanitarian Fund campaign kicks off this week with "Add-A-Buck" promotions in 76 core-store doors.

Details on Industry Insight.


Tiffany Montgomery
Print This Article

Nike reports Q3 results

By Press Releases
March 17, 2011 3:50 PM

BEAVERTON, Ore.--(BUSINESS WIRE)-- NIKE, Inc. (NYSE:NKE - News) today reported financial results for its fiscal 2011 third quarter ended February 28, 2011. Earnings per share for the quarter were up 7 percent on a 7 percent increase in net revenue as higher NIKE, Inc. sales and SG&A expense leverage offset lower gross margin results.

 

“Our solid third-quarter results demonstrate the power of the NIKE, Inc. portfolio,” said Mark Parker, President and CEO of NIKE, Inc. “Our unique ability to create deep connections with consumers, led by an impressive pipeline of innovative product and exciting retail experiences, continues to strengthen our brands and accelerate growth. Moving forward, we’ll continue to leverage our scale, financial resources, and operational discipline to drive near and long-term value to shareholders.”*

 

Futures Orders

As of the end of the quarter futures orders for NIKE Brand athletic footwear and apparel, scheduled for delivery from March through July 2011, totaled $7.9 billion, 11 percent higher than orders reported for the same period last year. Excluding currency changes, reported orders would have increased 9 percent.*

 

By geography, futures orders were as follows:

 

Geography Reported Futures Orders Excluding Currency Changes

North America +11% +11%

Western Europe +4% 0%

Central and Eastern Europe +9% +9%

Greater China +19% +13%

Japan +4% +2%

Emerging Markets +21% +18%

Total NIKE Brand Futures Orders +11% +9%

Third Quarter Income Statement Review

 

Revenues for NIKE, Inc. increased 7 percent to $5.1 billion or up 8 percent on a currency neutral basis. Revenues for the NIKE Brand were up 8 percent. Excluding the impacts of changes in foreign currency NIKE Brand revenues rose 9 percent driven by growth in all seven NIKE Brand key categories and every geography except Japan.

 

Revenues for our Other Businesses increased 1 percent, with minimal impact from changes in foreign currency exchange rates, as growth in Converse, Cole Haan, and Hurley was largely offset by lower revenues in Umbro and NIKE Golf.

 

Gross margin declined 110 basis points to 45.8 percent mainly as a result of higher product costs, elevated freight costs, including additional airfreight incurred to meet strong demand for NIKE Brand products, and a smaller proportion of license revenue due in part to the conversion of Converse’s U.K. business to direct distribution. These factors more than offset the positive impacts of favorable year-over-year changes in foreign exchange rates, a higher mix of full-price sales, the benefits of ongoing product cost reduction initiatives, and growing sales from our Direct to Consumer operations.

 

Selling and administrative expenses grew at a slower rate than revenue, up 5 percent to $1.6 billion. Operating overhead expenses increased 6 percent to $1.1 billion as a result of additional investments made in both our wholesale and direct to consumer businesses. Demand creation expenses rose 3 percent to $578 million due to marketing support for key product initiatives and investments in retail product presentation for wholesale accounts.

 

On page 2: Other income, balance sheet review

 

Emails for Small Business with Constant Contact

 

Previous 1 2 Next

More on: Nike, earnings

Articles You Might Have Missed