Nike Posts Highest Quarterly Revenue with a Drop in Profits

Major sportswear company, ambulance Nike Inc. on Thursday posted the highest quarterly revenue in its history, illness a figure likely to be overshadowed by a drop in fourth-quarter profits as it struggles with higher costs and a weak European economy.

Its $1.17 per share profit fell well short of Wall Street expectation of $1.37 per share, ambulance | marking just the second time in 19 quarters that Nike missed analyst forecasts.

The results sent Nike’s share price down nearly 11 percent to $86.40. Its stock closed Thursday at $96.89.The athletic footwear and apparel brand, based in Washington County, said fourth quarter sales climbed 12 percent from a year ago, reaching a new quarterly record of $6.5 billion.

But its net profit for the year fell 8 percent to $549 million, or $1.17 per share, which the company attributed to increased marketing spending, higher tax rates and a restructuring of its Western European division that led to a $24 million charge.

Nike said the restructuring was to “better align resources against growth opportunities and drive efficiencies,” but didn’t disclose whether layoffs were involved. 

For the fiscal year, Nike profits grew 4 percent to $2.2 billion, or $4.73 per share, on a 16 percent increase in sales to $24.1 billion. Its inventory levels ended the fiscal year up 23 percent to $3.4 billion.