Nike reveals future orders total $9.4b
US sportswear brand Nike has reported that its worldwide futures orders for products to be delivered from March through July totalled $9.4 billion; 15% higher than orders reported for the same period in 2011.
While futures orders do not necessarily guarantee comparable sales for the period, the apparent increase for the March-July timeframe could be attributed to Nike taking over as the official provider of on-field apparel for the NFL. Nike earned the rights in late 2010 for five years, beginning with the current season.
The futures order was among data the company announced in its third quarter earnings report for fiscal 2012 for the third quarter ended February 29, 2012.
The company reported a 7% profit with net income increasing to $560 million. Revenues increased 15% to $5.8 billion; 16% on a currency-neutral basis. Excluding the impacts of changes in foreign currency, Nike brand revenues rose 16% with growth in every geography except Japan and in all key categories.
Selling and administrative expenses grew at a lower rate than revenue, up 10% to $1.8 billion. Demand creation expenses increased 6% to $615 million driven by marketing support for key product launches, sports marketing expense and investments in retail product presentation for wholesale accounts.
“We had a strong third quarter,” Nike chief executive Mark Parker said. “Our relentless focus on innovation delivered powerful new products and services for athletes and consumers, and continues to drive value to our shareholders.
“The environment remains volatile, but I’m optimistic about the future. We’re starting a great season of major sports events and we have a pipeline full of innovation to fuel growth over the long term.”
