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Business: Nike reports higher profits, warns of lower earnings soon
The Associated Press
BEAVERTON, Ore. (June 28, 2001 10:27 a.m. EDT) - Nike Inc. posted a 30 percent rise in its fiscal fourth quarter profit, beating Wall Street estimates, but warned that earnings for the current quarter will fall below levels reached during the same period last year.
The athletic footwear and apparel giant said Thursday it earned $163 million, or 60 cents a share, for the quarter ended May 31, up from $126 million, or 46 cents per share, a year earlier.
Analysts surveyed by Thomson Financial/First Call were expecting Nike to earn 59 cents a share for the quarter.
Sales rose to $2.5 billion for the quarter from last year's $2.3 billion.
Full year net income totaled $590 million, or $2.16 per diluted share, compared to $579 million, or $2.07 per share, for 2000. Revenue for the year rose to $9.49 billion from $9.0 billion a year ago.
Philip Knight, chairman and CEO, credited revenue growth around the world, despite setbacks from foreign exchange translations, and positive results in the U.S. apparel business.
Knight said strong sales in apparel in the United States were welcome in light of "continued weakness in our largest business, U.S. footwear."
U.S. sales were down one percent, Europe was up seven percent, Asia Pacific increased three percent and the Americas six percent, the company said.
But Nike said excessive inventory may lead to lower sales in the current quarter compared to the previous year. The company said earnings for fiscal 2002 were expected to pick up in the second half, and that futures orders for athletic equipment and apparel were up three percent for the June-November period.
Analysts surveyed by Thomson Financial/First Call had expected Nike would earn 77 cents a share in the current quarter, the same as last year.
In early trading on the New York Stock Exchange, Nike shares were off 66 cents at $42 a share. |
