The following is reprinted with permission from The Associated Press. © Copyright 1996 The Associated Press. All Rights Reserved.
Nike Profit Rises 38 Percent in Latest Quarter
July 09, 1996The sneaker industry leader said Tuesday it earned $156.4 million, or $1.06 per share, in the three months ended May 31 compared with $113.4 million, or 78 cents a share, a year earlier.
That was above the consensus estimate of 98 cents per share held by 17 analysts surveyed before the earnings report by Zacks Investment Research.
Nike's stock rose sharply in the wake of the report. On the New York Stock Exchange, Nike Class B shares rose $4.50 to close at $108.75.
Fourth-quarter revenue reached $1.92 billion, up 36 percent over $1.41 billion a year earlier.
Domestic sales of athletic shoes and apparel in the fourth quarter increased to $1.02 billion, exceeding $1 billion for the first time ever in a quarter, Nike said.
For the fiscal year, Nike earned a record $553.2 million, or $3.77 per share, up 38 percent over its profit of $399.7 million, or $2.72 per share, a year earlier.
Full year revenues totaled a record $6.47 billion, up 36 percent from $4.76 billion a year earlier.
Future orders for athletic shoes and apparel scheduled for delivery between June and November total a record $3.93 billion, a 55 percent increase over orders for the same period last year, Nike chairman Philip Knight said.
Knight said U.S. footwear sales grew 20 percent, while international footwear sales increased 35 percent. Sales of U.S. athletic apparel rose 99 percent for the year, he said.
"We are starting to see the benefits of our investment spending outside the U.S. as we balance the power of the global Nike brand with our localized sports marketing efforts," he said.
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