Nike Inc. (NYSE: NKE), the world’s largest athletic apparel and footwear maker, is scheduled to release its fiscal third-quarter financial results after the closing bell on Thursday, March 17, 2011. Analysts, on average, expect the company to report earnings of $1.11 per share on revenue of $5.16 billion. In the year ago quarter, the company reported earnings of $1.01 per share on revenue of $4.73 billion.
Nike, Inc. designs, develops, and markets footwear, apparel, equipment, and accessory products for men, women, and children worldwide. It is a seller of athletic footwear and athletic apparel in the world. Nike's business operations are divided into four major segments, with Footwear being the leading revenue contributor at 55 percent, followed by Apparel at 26 percent, Equipment with 5 percent, and Other's contributing 14 percent to the total revenue.
In the preceding fiscal first quarter, the Beaverton, Oregon-based company's net income was $457 million or $0.94 per share, compared with a profit of $375 million or $0.76 per share for the year-ago quarter. Revenues for the second quarter increased 10% to $4.84 billion from $4.41 billion in the same quarter last year. Excluding changes in currency exchange rates, second quarter revenues grew 11% from a year earlier. Analysts, on average, expected the company to report earnings of $0.88 per share on revenue of $4.81 billion.
Last year, the company unveiled its strategy for long-term growth across its global portfolio of brands and businesses, indicating its main financial objectives through 2015 to include high single-digit revenue growth, mid-teens earnings per share growth, and a return on invested capital of 25%. The company's target included revenues of $27 billion by the end of fiscal 2015 based on growth expectations across its portfolio, like the Nike Brand, Cole Haan, Converse, Hurley, Jordan Brand, Nike Golf and Umbro.
The company continues to contain costs by improving supply chain efficiencies and other cost reduction programs.
The footwear industry is among several in the retail sector benefitting from a recent uptick in in overall employment and consumer spending. Improved year over year retail sales in January and better global sales were also a positive for the industry at the start of 2011. The approaching spring sales season could also provide a boost to several companies in the footwear industry. Innovation is proving all important in the footwear industry and those such as Nike Inc. which are spending time on design have been gaining market share.
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