Nike Inc has reported financial results for its 2010 fiscal fourth quarter and full year ended 31 May 2010. Fourth quarter revenues increased by 8% to US$5.1 billion (€4.2 billion). This is up from US$4.7 billion for the same period last year. Excluding changes in currency exchange rates, net revenues were up 4% year on year.
For Nike’s full financial year, revenues declined 1% to US$19.0 billion (€15.5 billion), compared to US$19.2 billion achieved last year. Excluding currency changes, net revenues were down 2% for the year.
Fourth quarter net income increased 53% to US$522 million and diluted earnings per share increased 51% to US$1.06. The fourth quarter clearly bolstered the company’s full year position. Fiscal 2010 net income increased 28% to US$1.9 billion and diluted earnings per share increased 27% to US$3.86.
In fiscal 2009, Nike incurred a US$145 million after-tax restructuring charge in the fourth quarter, and third quarter results included a US$241 million, after-tax non-cash charge related to the impairment of goodwill, intangible and other assets of the company’s Umbro subsidiary.
Excluding these charges, fourth quarter net income and diluted earnings per share both increased by 7%. For the full year, comparable net income increased by 2% and diluted earnings per share increased 1%.
"We finished strong with a great quarter and accelerating momentum across the business," said Mark Parker, Nike President and Chief Executive Officer. "During tough economic times our goal is to deliver solid financial performance and create competitive separation in the marketplace. We did that in 2010.
"Nike is at its best when we focus on our two core values – innovation and inspiration." Parker continued, "Going forward you can expect to see more game-changing products, more compelling experiences wherever consumers touch our brands, and a laser focus on operational and financial excellence. These are the things that allow us to accelerate first and faster than everybody else."
The company meanwhile reported worldwide futures orders for Nike brand athletic footwear and apparel, scheduled for delivery from June through November 2010, totalling US$8.8 billion. This is 7% higher than orders reported for the same period last year. Excluding currency changes, orders would have increased by 10%.
