Nike Inc. Earnings Cheat Sheet: Profit Increases Again

S&P 500 (NYSE:SPY) component Nike Inc. (NYSE:NKE) reported net income above Wall Street’s expectations for the fourth quarter. Nike Inc. designs and markets high quality footwear, apparel, equipment, and accessory products throughout the world.

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Nike Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the footwear and apparel company rose to $594 million ($1.24/share) vs. $521.9 million ($1.05/share) in the same quarter a year earlier. A rise of 13.8% from the year earlier quarter.

Revenue: Rose 13.6% to $5.77 billion YoY.

Actual vs. Wall St. Expectations: NKE beat the mean analyst estimate of $1.16/share. Estimates ranged from $1.11 per share to $1.29 per share. It beat the average revenue estimate of $5.53 billion.

Quoting Management: “In fiscal year 2011, we delivered exceptional results in extraordinary times,” said Mark Parker, NIKE, Inc. President and CEO. “Our business is organized to drive growth across multiple brands, geographies and categories, as we manage through the ever-changing macroeconomic landscape.” Parker added, “We continue to deliver compelling innovation to athletes and consumers, and strong returns for our shareholders. The global appetite for sports has never been stronger.”

Key Stats:

The company has now seen net income rise in three-straight quarters. In the third quarter, net income rose 5.4% and in the second quarter, the figure rose 21.7%.

Gross margin shrunk 3.1 percentage points to 44.3%. The contraction appeared to be driven by rising costs as the figure rose 20.3% from the year earlier quarter while revenue rose 13.6%.

Revenue has risen the past four quarters. Revenue increased 7.3% to $5.08 billion in the third quarter. The figure rose 9.9% in the second quarter from the year earlier and climbed 7.8% in the first quarter from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of $1.08 versus a mean estimate of net income of $1.12 per share.

Competitors to Watch: Crocs, Inc. (NASDAQ:CROX), Deckers Outdoor Corp. (NASDAQ:DECK), Skechers USA, Inc. (NYSE:SKX), K-Swiss Inc. (NASDAQ:KSWS), Steven Madden, Ltd. (NASDAQ:SHOO), The Timberland Company (NYSE:TBL), LaCrosse Footwear, Inc. (NASDAQ:BOOT), Phoenix Footwear Group, Inc. (AMEX:PXG), TOD’S SpA (NYSE:TOD), Kenneth Cole Productions (NYSE:KCP), Under Armour (NYSE:UA) and Nordstrom (NYSE:JWN).

Stock Performance: Shares of NKE are up 3.75% after hours.

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(Source: Xignite Financials)

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