NIKE’s fourth quarter income falls eight per cent

NIKE’s net income fell eight per cent to $549 million during the three months to May 31, as selling and administration costs rose at the same 12 per cent rate as income.

For the full year, revenues were up 16 per cent to $24.1 billion.

Gross margin fell to 43.4 per cent.

For fiscal 2012, Cole Haan and Umbro – the two brands NIKE put up for sale in May – together contributed $797 million in revenues and a combined loss before interest and taxes of $43 million.

This compares to fiscal 2011 combined revenues of $745 million and a loss before interest and taxes of $18 million.

“Fiscal year 2012 demonstrated NIKE’s greatest strength – innovation,” says Mark Parker, the company’s president and CEO.

“We delivered an amazing number of game changing products and services that drove record revenue growth.

“We also delivered solid profit growth for the year, despite some headwinds in a challenging global economy, which will continue into the next year.

“That said, NIKE is well positioned to remain aggressive, flexible and laser focused on the high growth opportunities.”

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