Nike, Inc. reported net earnings slid 28 percent in its fiscal fourth quarter ended May 31 and were just short of Wall Street expectations due in part to higher markdowns used to clear inventories. Sales grew 8 percent on a currency-neutral basis, topping expectations, as double-digit DTC gains offset a slight wholesale decline. Inventories ended flat at the quarter’s close.
Earnings of 66 cents a share were just below Wall Street’s consensus estimate of 67 cents. Revenues of $12.8 billion were slightly above Wall Street’s consensus estimate of $12.59 billion. Gross margins were down 140 basis points, matching Wall Street’s consensus estimate.
Highlights of the performance for the fourth quarter and year include:
- Full-year reported revenues were $51.2 billion, up 10 percent compared to the prior year and up 16 percent on a currency-neutral basis;
- Fourth quarter reported revenues were $12.8 billion, up 5 percent compared to the prior year and up 8 percent on a currency-neutral basis;
- Nike Direct reported revenues for the fourth quarter were $5.5 billion, up 15 percent compared to the prior year and up 18 percent on a currency-neutral basis;
- Wholesale reported revenues for the fourth quarter were $6.7 billion, down 2 percent compared to the prior year and up 2 percent on a currency-neutral basis;
- Gross margin for the fourth quarter decreased by 140 basis points to 43.6 percent; and
- Diluted earnings per share were $0.66 for the fourth quarter.
For full details on Nike’s fiscal forth quarter and full-year results and outlook, including executive commentary from the analyst conference call, go here:
Photo courtesy Nike/United Pack
