Income declines at Nike
Nike, Inc. has reported increased revenue for the first quarter ended August 31. Revenue grew 9% to $4.2 billion compared with $3.9 billion for the same period last year. However, net income declined 13% to $377.2 million compared with $432.3 million in the prior year. Results for the first quarter included a $40.8 million expense, net of taxes, related to the expensing of stock options. Excluding this, first quarter net income declined 3%.
During the quarter, US revenues increased 6% to $1.6 billion versus $1.5 billion for the prior year quarter. US athletic footwear revenues increased 6% to $1.1 billion. Apparel revenues increased 9% to $431.5 million. Equipment revenues declined 1% to $91.3 million. US pre-tax income declined 2% to $338.9 million.
First quarter revenues for the European region grew 4% to $1.3 billion from $1.2 billion for the same period last year. Changes in currency exchange rates increased revenue growth by three percentage points. Footwear revenues were $679.5 million, down 1% from $685.1 million last year. Apparel revenues increased 12% to $487 million and equipment revenues increased 7% to $104.4 million. Pre-tax income declined 8% to $302.5 million.
Revenues in the Asia Pacific region grew 13% to $518.4 million compared with $459.6 million a year ago. Footwear revenues were up 12% to $266 million, apparel revenues increased 14% to $200.9 million and equipment revenues grew 13% to $51.5 million. Pre-tax income increased 8% to $98.9 million.
Revenues in the Americas region increased 13% to $242.5 million from $213.7 million in the first quarter of fiscal 2006. Currency exchange rates contributed three percentage points to this growth rate. Footwear revenues were up 10% to $172.3 million, apparel revenues increased 26% to $51.2 million and equipment revenues grew 18% to $19 million. Pre-tax income was up 9% to $48.4 million.
