Nike’s Q3 profit boasts 30-percent increase
Nike (NYSE: NKE) said its third-quarter profit jumped more than 30 percent because of strong sales overseas and a weak dollar.
Nike said its net income grew to $463.8 million, or $0.92 per share, up from $350.8 million, or $0.68 per share, in the same period a year earlier.
Revenue for the quarter, which ended Feb. 29, grew 16 percent to $4.54 billion, up from $3.93 billion a year earlier. Changes in currency exchange rates accounted for 6 percentage points of revenue growth for the quarter.
Nike President Mark Parker said in a statement the results are a “clear indication that our strategy is working and that we’re on track to achieve our financial goals for this fiscal year and beyond.”
Revenue grew 20 percent or more in overseas markets, particularly strong in Asia and Europe. Company officials said Nike has already hit its goal of more than $1 billion in annual sales in China. U.S. revenue increased 5 percent, with gains in shoe and apparel goods but a drop in equipment sales.
Nike has made several changes to its subsidiary lineup, which brought in 15 percent more revenue for the quarter at $600.9 million.
The $29 million sale of Nike’s Starter brand to Iconic Brand Group Inc. is included the quarter’s income. Other recent deals, such as its acquisition of British soccer company Umbro PLC and the sale of its Bauer Hockey unit, are not reflected.
The company said its future orders, for products to be delivered from March through July, were up 11 percent for the quarter.
Brunswick plant closure costs to be in millions
Brunswick (NYSE: BC), the parent of Life Fitness, said it plans to close a Baja boat plant in Bucyrus, Ohio, eliminating 285 jobs, and sell some of the assets of the Baja business.
Brunswick said it signed a letter of intent to sell certain assets relating to the Baja boat business to Fountain Powerboat Industries of Washington, N.C. Terms of the agreement were not disclosed, and completion of the sale is subject to certain conditions.
In preparation for the transition, Brunswick will close the plant by the end of May. Pre-tax costs associated with the plant closure are estimated at $10 million to $15 million.
“This was a strategic decision to further refine our product portfolio and best focus our resources on brands and marine segments that we believe are core to our success going forward,” said Brunswick chairman and CEO Dustan McCoy in a statement.
Health Fitness to initiate $2.5 million stock buyback
The board of directors of Health Fitness Corp. (OTC Bulletin Board: HFIT) has authorized a plan to repurchase up to $2.5 million of the company’s outstanding common shares. The share repurchase plan is effective on April 1, and will be open for six months.
Share repurchases will be funded by the company’s available working capital. As of March 24, the company had more than 20.2 million common shares outstanding.
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