Home The Latest Nike on track for a $20 billion year

Nike on track for a $20 billion year

| Print |  Email
The Latest
Wednesday, December 22, 2010

 

By Corey Paul

Nike's fiscal second-quarter earnings increased 22%, exceeding analyst expectations of Oregon's largest company.

Revenues hit $4.8 billion for the quarter and $10 billion for the fiscal year to date. Worldwide future orders rose 11%, to 7.7 billion. Contained in those future orders figures is the best picture of the Nike retail pipeline, which benefited most from growth in its largest market of North America, China and emerging countries such as Brazil. Sales in all its regions rose except in Wesern Europe and Japan.

"We had a great second quarter," said president and chief executive Mark Parker. "Almost every brand, category and geography delivered growth."

That's growth to the tune of $457 million dollars, or 94 cents per share, for the quarter ending Nov. 30. It compares to $375 million, or 76 cents per share, a year earlier.

Parker mentioned a two-fold strength of the athletic-apparel giant, brand strength and product design, which enabled the company to sell more items at full price. Gross margin rose from 44.5% to 45.3%

In a conference call Tuesday, Parker and other executives warned of rising freight, labor, oil and cotton costs that pressure results. Executives expect those high costs to continue for some time before leveling out, but Nike is also expanding its reach to emerging markets such as the smaller-but-still-huge cities in China.

Nike has also focused more on subsidiary brands that grew a collective 13% and include Converse (selling well in China), Hurley and Umbro.

Nike also recently closed an exclusive partnership with the National Football League for 2012, beating out Reebok.

On Monday, Nike's stock price reached $92.46, their highest level in history.

Update: Nike is hiring. The company's website this Wednesday morning lists 145 openings in Oregon. Among them are openings for production artists, merchants, tax managers and designers.

 

Comments   

 
DesignPDX
0 #1 LayoffsDesignPDX 2010-12-29 10:23:51
I think the fact that they laid off over 1800 people last year helped these numbers...not good for Oregon. Not good for anyone.
Quote | Report to administrator
 

More Articles

The Bookseller

November/December 2014
Wednesday, October 22, 2014
BY AMY MILSHTEIN

Everyone knows college is expensive, but a look at the numbers brings that into sharp — and painful — focus.


Read more...

The Diaspora

October 2014
Thursday, September 25, 2014
BY LEE VAN DER VOO

Former newspaper reporters move into brand journalism.


Read more...

Measure 91: What Oregon Businesses Need to Know

Contributed Blogs
Wednesday, October 15, 2014
91 thumbBY DIANE BUISMAN

Some common misconceptions employers have about marijuana.


Read more...

Gone Fishing

October 2014
Thursday, September 25, 2014
BY LORI TOBIAS

Business has been good to Laura Anderson, leading some to suggest she must be awfully lucky to find such success in a business notorious for failure. But luck’s had little to do with it.


Read more...

Political Clout

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

Businesses spend billions of dollars each year trying to influence political decision makers by piling money into campaigns.


Read more...

Revenge Forestry

November/December 2014
Tuesday, October 14, 2014
BY JONATHAN FROCHTZWAJG

A flare-up in the Elliott Forest raises questions about détente in Oregon’s timber wars.


Read more...

Gone Girl

News
Monday, September 29, 2014
roundup-logo-thumb-14BY LINDA BAKER | OB EDITOR

Wehby disappears, Kitzhaber fails to disclose and Seattle gets bike share before Portland.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS