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Nike profits drop after restructuring

Net profits at Nike dropped 30% to $341 million (£209m) in the fourth quarter ended May 31 after corporate restructuring costs of $195m (£119m) at the sportswear giant.

Nike’s sales were down 7% to $4.7 billion (£2.9m) for the fourth quarter, and the sportswear giant said that global wholesale orders scheduled for delivery between June and November were down 12% at $7.8bn (£4.8bn).

For the year to May 31, sales rose 3% to $19.2bn (£11.8bn) but net profits fell 21% to $1.48bn (£900m) over the year.

The figures include a corporate restructuring charge of $144.5 million (£88.6m) in the fourth quarter, as well as a $240.7m (£147.6m) after-tax impairment charge related to its Umbro subsidiary in the third quarter.

Nike president and chief executive Mark Park said: “Fiscal 2009 was a year that challenged companies to leverage core strengths and adapt quickly to a changing landscape. Our strong results demonstrate that we are meeting these challenges and seizing the opportunity to optimise our position as the industry leader.”

“By focusing on what Nike does best, creating great product, telling great stories, and connecting with consumers, I believe that we will become a stronger, more profitable and more valuable company for our shareholders. We’ve made some tough decisions over the past year, yet given our ability to increase our competitive separation through product innovation and brand relevance across our portfolio of businesses, I remain strongly optimistic about our long-term potential.”

 

 

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