The Economy

Nike's Fiscal 2011 Results Top Wall Street Estimates

June 28, 2011

Stock jumps 10%.

What a difference a quarter makes.

After taking a beating on Wall Street earlier this year because of concerns that higher input costs would eat into its profit margins, Nike Inc.'s fourth-quarter and full-year fiscal 2011 results topped analysts' estimates, sending its stock soaring.

Nike reported fourth-quarter revenues of $5.8 billion, up 11% on a currency-neutral basis, and full-year revenues of $20.9 billion, up 10%.

The Beaverton, Ore.-based manufacturer of athletic footwear noted in its earnings release yesterday that "higher revenues and SG&A-expense leverage more than offset a lower gross-margin rate."

"In fiscal year 2011, we delivered exceptional results in extraordinary times," said Mark Parker, Nike president and CEO. "Our business is organized to drive growth across multiple brands, geographies and categories, as we manage through the ever-changing macroeconomic landscape."

Parker added: "The global appetite for sports has never been stronger."

Nike said its diluted earnings per share for both the quarter ($1.24, up 17%) and full year ($4.39, up 14%) hit record highs.

As of the end of the quarter, Nike's futures orders scheduled for delivery from June through November totaled $10.3 billion, 15% higher than orders reported for the same period last year.

Future orders excluding currency changes were up 23% in emerging markets, and 17% in Greater China, according to the shoemaker.

About the Author

Josh Cable | Former Senior Editor

Former Senior Editor Josh Cable covered innovation issues -- including trends and best practices in R&D, process improvement and product development. He also reported on the best practices of the most successful companies and executives in the world of transportation manufacturing, which encompasses the aerospace, automotive, rail and shipbuilding sectors.

Josh also led the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.

Before joining IndustryWeek, Josh was the editor-in-chief of Penton Media’s Government Product News and Government Procurement. He also was an award-winning beat reporter for several small newspapers in Northeast Ohio.

Josh received his BFA in creative writing from Bowling Green University, and continued his professional development through course-work at Ohio University and Cuyahoga Community College.

A lifelong resident of the Buckeye State, Josh currently lives in the Tremont neighborhood of Cleveland. When the weather cooperates, you’ll find him riding his bike to work, exercising his green thumb in the backyard or playing ultimate Frisbee.