On Thursday, March 22, after the market close, ultimate Rule Maker and footwear, apparel, and equipment firm Nike
- Total sales grew 8.7%, driven by a 15% jump in the company's defined European region and 11% improvement in the Asian region. U.S. growth was very pedestrian at 2%, while the Americas were only slightly better, up 5%.
- Pre-tax income grew fastest in Europe and in the Other division, which includes Cole Haan, Converse, and Bauer Hockey.
- Net income grew nearly 8%, while diluted earnings grew 10.5%, thanks to share buybacks.
- Nike declared a two-for-one stock split on Feb. 15; shares will be distributed to shareholders on April 2.
- The company carries a four-star rating in the Motley Fool CAPS intelligence database, as do rivals Wolverine Worldwide
(NYSE:WWW) and K-Swiss(NASDAQ:KSWS) . Rival Skechers(NYSE:SKX) carries a higher five-star rating, while Steve Madden(NASDAQ:SHOO) carries a three-star rating. Feel free to head to CAPS to see what others think and voice your own opinion.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$3,930 |
$3,927 |
$3,613 |
8.7% |
|
Net Profit |
-- |
$351 |
$326 |
7.7% |
|
EPS |
$1.33 |
$1.37 |
$1.24 |
10.5% |
|
Diluted Shares |
-- |
255 |
263 |
(3%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
44.19% |
43.57% |
0.62 |
|
Operating Margin |
13.59% |
14.25% |
(0.66) |
|
Net Margin |
8.93% |
9.02% |
(0.09) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,270 |
$2,007 |
13.1% |
|
Accounts Rec. |
$2,532 |
$2,352 |
7.7% |
|
Inventory |
$2,168 |
$2,034 |
6.6% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$801 |
$786 |
1.9% |
|
Long-Term Debt |
$419 |
$411 |
2% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Fools will have to wait until Nike files its 10-Q with the Securities and Exchange Commission for juicy cash flow details. Find out why Fools always follow the money.
Related Foolishness:
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Fool contributor Ryan Fuhrmann is long shares of Nike but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
