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Nike: ‘Global appetite for sports never stronger’
Futures orders up 15 per cent overall after Q4 and full-year growth
Nike said futures orders for its footwear and apparel at the end of the 2011 fiscal year were up 15 per cent compared to the end of the 2010 fiscal year, with ‘the global appetite for sports never stronger’.
Reporting its Q4 results and full-year 2010/11 results for the 52 weeks to May 31, 2011, Nike said Q4 revenues for Nike Inc increased 11 per cent on a currency neutral basis to $5.8bn (£3.6bn), with Nike Brand revenues up 12 per cent on a similar basis.
Football was the only category not to see growth in Q4, which Nike put down to there being no major tournament this summer, compared to the 2010 World Cup which boosted sales in Q4 2010. It said revenues for other businesses increased six per cent with a one percentage point benefit from changes in currency exchange rates.
For the quarter, growth in Converse, Cole Haan and Hurley more than offset lower revenues at Umbro and Nike Golf.
In Western Europe, Q4 revenues grew five per cent with four percentage points of benefit from changes in currency exchange rates. On a constant currency basis, revenues grew in every territory except France and Northern Europe. By category, currency neutral revenue growth in running, basketball, and men’s and women’s training was mostly offset by lower revenues in sportswear and action sports. Football revenues were flat for the quarter.
Futures orders for Nike Brand athletic footwear and apparel, with deliveries scheduled for between June and November, stand at $10.3bn (£6.4bn), 15 per cent higher than the figure at the end of Q4 2010. In Western Europe, futures orders are up 11 per cent, although only one per cent when excluding currency changes.
For the full 2011 fiscal year, Nike said revenues were up 10 per cent for both sides of its business, to $20.9bn (£13bn) for Nike Inc and $18.1bn (£11.3bn) for Nike Brand. Excluding the impact of changes in currency exchange rates, Nike Brand revenues were higher in all seven key categories and in every geography except Japan. Revenues for other businesses increased nine per cent with one percentage point of benefit from changes in currency exchange rates.
Currency neutral revenues for the fiscal year were higher at Converse, Cole Haan, Hurley and Umbro, offset partially by a slight revenue decline at Nike Golf.
Mark Parker (pictured), Nike Inc president and chief executive officer, said: “In fiscal year 2011, we delivered exceptional results in extraordinary times.
“Our business is organised to drive growth across multiple brands, geographies and categories, as we manage through the ever-changing macroeconomic landscape. We continue to deliver compelling innovation to athletes and consumers, and strong returns for our shareholders.
“The global appetite for sports has never been stronger.”
