Tuesday, December 21, 2010

NKE FY2011 Q2 Earnings

Nike, Inc. reported financial results for their fiscal 2011 second quarter ending November 30, 2010 today after the close. Diluted earnings per share were reported at $0.94, representing a 24% increase year-over-year and beating analyst expectations of $0.87. Revenue for the quarter was $4.84 billion, up 10% over last year and also surpassing Street estimates of $4.81 billion. Shares of NKE finished up 2.25% today at $92.30, but are down nearly 5% in after-market trading.

President and CEO Mark Parker attributes growth in nearly every brand, category, and geographic location to their "innovative product, compelling brands, and strong marketplace management." In the future, Parker believes that the company will have "far more opportunities than challenges."

Futures orders for branded products from December 2010 through April 2011 totaled $7.7 billion, which is 11% greater than orders reported for the same time frame last year. The Street, however, was expecting an 11.6% gain in futures orders, which may explain why the stock is down in extended trading hours. Inventories were up 8% from FY2010, ending the quarter at $2.3 billion. Net Income increased 22% to $457 million.

The company repurchased 3.5 million shares for approximately $280 million during the second quarter. This is part of the company's 4-year, $5 billion share repurchase program. To date, 17.4 million shares have been bought back for about $1.3 billion under this program.


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