Nike wins 4Q, warns on 1Q

June 28, 2001 Posted: 1237 GMT

NEW YORK (CNNfn) -- Sports shoe and apparel maker Nike Inc. reported fiscal fourth-quarter earnings Thursday that narrowly edged Wall Street expectations, but warned that its fiscal first-quarter results will disappoint.

The Beaverton, Ore.-based company earned $163 million, or 60 cents a share, in the quarter ended May 31. Analysts surveyed by earnings tracker First Call had forecast 59 cents a share. The latest quarter earnings were up from $126 million, or 46 cents a share, a year earlier.

Fourth-quarter revenue rose 9 percent to $2.5 billion from $2.3 billion a year ago.

But the company also warned its fiscal first-quarter earnings will fall below the 77 cents a share it earned a year ago, blaming gross margin pressure arising from currency problems and excess inventory. Analysts surveyed by First Call expected the company to earn 77 cents a share in the quarter.

Nike said it expects earnings to grow in the second half of fiscal 2002.

"We enter fiscal year 2002 with a sense of pragmatic optimism," CEO Philip H. Knight said.

In the full fiscal year 2001, Nike earned $590 million, or $2.16 a share, up from $579 million, or $2.07 a share, in 2000. Revenue rose to $9.5 billion from $9 billion.

"Our fiscal 2001 results reflect a year in which we delivered 5 percent revenue growth for the year, despite significant foreign exchange pressure and continued weakness in our largest business, U.S. footwear," Knight said.

Nike said it has $4.3 billion in future orders for athletic footwear and apparel scheduled for delivery between June and November, 3 percent more than a year ago. 

Shares of Nike (NKE: Research, Estimates)  slipped 9 cents to $42.66 Wednesday.

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