Publish date:

Nike Profit Falls; 2010 Orders Rise

Nike sees its earnings and revenue fall in its latest fiscal quarter, but its future, global orders are up.



) -- Sports footwear and apparel giant


(NKE) - Get Report

saw its earnings and revenue fall in the second quarter of fiscal 2010, but its future global orders are up.

Nike stock is flat at $63.30 in after-hours trading.

Nike's second quarter revenue fell 4% to $4.4 billion from $4.6 billion in the year-ago period.

Although its earnings also declined, it still beat Wall Street's estimates, with second quarter net income falling 4% to $375 million from $391 million a year ago. Its diluted earnings per share dropped 5% to 76 cents, exceeding Wall Street estimates of 71 cents per share.

During the second quarter, Nike generated much of its revenue from emerging markets. Whereas the company's revenue declined in all of its other global markets, it observed an 8% revenue increase to $555 million in the emerging markets, where it did especially well in footwear.

Another source of Nike's revenue growth in the second quarter was its other businesses, including Cole Haan, Converse, Hurley International, Nike Golf and Umbro. They were up 1% to $556 million. Nike was also helped by lower selling and administrative costs, greatly attributable to restructuring actions it completed in the last fiscal year.

Looking forward, the company announced a 4% increase in future orders amounting to $7 billion for Nike footwear and apparel worldwide. They're scheduled to be delivered from December through April 2010, again, much of them to the emerging markets.

Also noteworthy is Nike's repurchase of more than 3 million shares for about $194 million in the second quarter with its four-year, $3 billion share repurchase program. When the current share repurchase program ends, it will be followed by another, of $5 billion, which the board of directors approved in September 2008.

Footwear companies are mixed in after-hours trading.


TheStreet Recommends

(SKX) - Get Report

has fallen 1.8% to $28.40 while


(CROX) - Get Report

has inched up 0.4% to $5.60.


(BOOT) - Get Report

has tumbled 2.2% to $13.60.

-- Reported by Andrea Tse in New York

>>See our new stock quote page.

Follow on


and become a fan on


Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.