BikeBiz Bicycle and cycling retail news
Here’s the release from Nikebiz:
First quarter earnings were $0.98 per diluted share versus $0.81 before accounting change a year ago
Revenues for the quarter increased eight percent to $3.0 billion
Gross margins improved 160 basis points to 43.0 percent
Worldwide futures orders increased 10.5 percent
Beaverton, OR (18 September, 2003) — NIKE, Inc. (NYSE:NKE) today reported revenues and earnings for the CompanyÂ’s first quarter ended August 31, 2003. First quarter revenues increased eight percent to $3.0 billion, versus $2.8 billion for the same period last year. First quarter net income totaled $261.2 million, or $0.98 per diluted share, compared to a loss of $48.9 million, or $0.18 loss per diluted share, and $217.2 million, or $0.81 per diluted share before accounting change in the prior year.
Philip H. Knight, Chairman and CEO, said, “Nike’s first quarter results reflect another great quarter in which global brand strength and superior product, combined with a favorable currency exchange environment, drove worldwide business results to record levels. This quarter, Nike’s sales topped $3 billion, the highest single quarter revenue in our history. Equally important, we again demonstrated our commitment to managing our business for long-term profitability, achieving the highest gross margin percentage in our recent history and delivering 21 percent growth in earnings per share before last year’s accounting change. As Nike’s global portfolio of businesses continues to expand, we will remain focused on managing both our brand and our business for long-term, profitable growth.”*
Futures Orders
The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from September 2003 through January 2004, totaling $ 3.7 billion, 10.5 percent higher than such orders reported for the same period last year. Approximately three points of this growth were due to changes in currency exchange rates. In addition, approximately four to five points of this growth can be attributed to an earlier start of the spring season for footwear sales in Europe.*
By region, futures orders for the USA were down three percent; Europe increased 28 percent; Asia Pacific grew 19 percent; and the Americas increased nine percent. In Europe, seven points of the increase were due to currency exchange rates. Currency exchange contributed to Asia Pacific and the AmericaÂ’s growth by two points and three points, respectively.*
“Once again, momentum in Nike’s international markets continued to fuel the business as international futures increased 23 percent,” Knight added. “While Nike’s USA futures declined three percent, we are confident that our largest business, USA footwear, is on the right track based on positive footwear futures growth. In addition, our profitability has grown and consumers are responding to our brand and the full range of Nike’s performance and active life product offerings.”*
