Nike FY 2009 Revenues Climb 3% - Converse and Hurley Up Double Digits
mike lewis
- June 25 2009
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Nike, Inc. released its fourth quarter and fiscal year reports for 2009 ended May 31, 2009 yesterday in which it reported that despite a seven percent drop in revenue in Q4, fiscal revenues for the year were up three percent.
In yesterday’s earnings call (To listen to the call, go HERE) Nike brand President Charlie Denson said that Nike delivered “strong performance in some pretty choppy waters” for 2009 and that action sports, the companies “newest key category, had significant double digit growth.”
CEO Mark Parker was very positive in the call and said that despite the fact that they were forced to lay off 1,700 friends and family, Nike continues to be a growth company, and while there are still challenges ahead, they are taking a prudent and opportunistic approach.
Parker continued by saying that “Converse…continues to be a real stand out performer within the portfolio. Brand strength for Converse is at an all time high and that strength is translating well in markets around the world.” Converse’s revenue for FY 2009 was up 26 percent to $915 million. “Converse and Hurley continue to outperform the market, picking up share and building brand strength,” added Parker. Hurley’s revenues for FY 2009 climbed 19 percent, grossing more than $200 million.
Parker also discussed the market in general, stating that while they are placing more importance on lower tiered pricepoints, they don’t believe bargain hunters will lead the market. “Markets will not be driven by the frugal consumer, but by the focused consumer. Is there room for premium product in today’s economy? Absolutely.”
Here are some highlights:
- Fourth quarter revenue down 7 percent to $4.7 billion, flat with the prior year excluding currency changes
- Fiscal 2009 revenue up 3 percent to $19.2 billion, up 4 percent excluding currency changes
- Fourth quarter diluted EPS of $0.70; excluding non-comparable items, diluted EPS up 5 percent to $0.99
- Fiscal 2009 diluted EPS of $3.03; excluding non-comparable items, diluted EPS up 10 percent to $3.81
- Worldwide futures orders down 12 percent, down 5 percent excluding currency changes
- Inventories down 3% versus prior year
To read the full report, go HERE
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