Nike Q4 Profit Falls; Stock Tumbles (NKE)

PUBLISHED: 29 Jun 2012 @ 18:05 | Comments (0) | More info about Ed Liston

Nike Inc. (NYSE:NKE) on Thursday reported disappointing fourth-quarter results, sending the company’s stock down sharply in early trading today.

Nike reported an 8% drop in its fourth-quarter net income as high product costs, charges related to restructuring and an unexpected customs evaluation hurt the company’s bottom-line. NKE’s results fell short of consensus forecast, which is a rare thing for the company. Nike has beaten Street estimates in 17 of the last 18 quarters.

Nike’s fourth-quarter net income was $549 million, or $1.17 per share, down from $594 million, or $1.24 per share reported in the same period last year. The consensus forecast for fourth-quarter net income was $1.37 per share.

NKE’s fourth-quarter revenue dropped 12% to $6.47 billion, compared to consensus forecast of $6.51 billion. Nike brand revenue climbed 15% in the quarter.

Nike saw revenue growth in all regions, however, growth was weakest in Western Europe. Revenue in North America climbed 13%.

For the full fiscal year, Nike posted net income of $2.22 billion, representing an increase of 4% over the prior year. Revenue for the full fiscal year rose 16% to $24.13 billion.

NKE stock is currently down 10.19% to $87.02.

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