Nike, Just Barely... Or Almost (NKE)

Nike Inc. (NYSE: NKE) is still trying to find its footing with its dominance during a nasty economy, no pun intended.  The sportswear, apparel, footwear, and equipment giant posted $0.99 EPS on a 7% drop in revenues to $4.7 billion.  We had estimates from Thomson Reuters listed as $0.96 EPS and $4.72 billion in revenue.  Currency and future orders are continuing to be an issue.

The company’s worldwide futures orders scheduled for delivery from June 2009 through November 2009, came to  $7.8 billion, a drop of 12% from the same period last year. Excluding currency changes, those reported orders would be roughly down about 5%.  Those are broken down as -4% in U.S., -24% in EMEA, -5% in Asia Pacific and -7% in the “Americas.”

We did not see guidance for the coming quarter, but estimates for Nike are $1.08 EPS on $5.07 billion in revenue.

Global inventories were down 3% at $2.4 billion, and the cash and short-term investments at year-end were up 24% at $3.5 billion.  Nike repurchased no shares during the quarter.

Shares closed down unofficially by almost 1% at $53.02 and shares are indicated down about 4% at $50.40 in after-hours trading.  Its 52-week trading range is $38.24 to $68.00.

Nothing here looked like any ringing endorsement of growth coming back on in any measurable manner.

Jon C. Ogg
June 24, 2009