Nike’s income soars, but its shares drop

BEAVERTON, Ore. — Higher sales and better margins helped Nike Inc.’s fourth-quarter net income jump 53 percent from a year earlier, when it recorded a major restructuring charge.

The world’s largest athletic shoe and clothing company on Wednesday reported net income of $522 million, or $1.06 per share, for the quarter that ended May 31. That’s up from $341.4 million, or 70 cents per share, a year earlier.

Excluding the restructuring charge from last year’s fourth quarter, Nike’s net income grew 7 percent. Its quarterly revenue rose 8 percent to $5.1 billion. But revenue rose just 4 percent, excluding currency fluctuations.

Investors, disappointed by a quarter that just met expectations and softer full-year results, sent shares down $1.50, or 2.1 percent, to $71.02 in electronic trading after hours Wednesday.

Analysts polled by Thomson Reuters, on average, anticipated the company would earn $1.06 per share on revenue of $5.15 billion.

Nike repurchased nearly 2.9 million shares during the quarter.

Nike, based in Beaverton, Ore., reported strong sales in its international market and a solid performance from its array of brands — both of which it is relying on to reach recently unveiled growth goals. The company announced in May that it aims to increase its revenue 40 percent over the next five years.

“We finished strong with a great quarter and accelerating momentum across the business,” Nike CEO Mark Parker said in a statement. “During tough economic times, our goal is to deliver solid financial performance and create competitive separation in the marketplace.”

For the full year, Nike’s net income rose 28 percent to $1.91 billion, or $3.86 per share, from $1.5 billion, or $3.03 per share, fiscal 2009. Excluding one-time items, it rose 2 percent.

Annual revenue fell 1 percent to $19 billion.

Looking forward, the company said orders for products to be delivered from June through November are 7 percent higher than for the same period last year.