Nike reported their third quarter 2007 earnings last Thursday, and during the follow-up conference call with anaylists, CEO Mark Parker revealed that all Nike running shoes will be Nike+iPod compatible by the end of this year:
When I took this job 15 months ago, I said Nike’s focus was on generating top line revenue and profitability. Our third quarter performance shows that we’re keeping that promise. Net revenue was up 9% over third quarter last year, the 22nd consecutive quarter of year-over-year revenue growth.
We’re able to deliver that kind of consistent performance because we create the most innovative and compelling product in the industry. For example, Nike Plus runners have logged more than 10 million miles, and all of our performance running shoes will be Plus-enabled by holiday.
Parker added:
We’re grabbing the opportunity to lead, working with our retail partners to take Nike and our industry someplace new, where consumers have experiences that are physical and digital and mobile. When a consumer has a Nike experience, there will be no doubt that it reflects and inspires the way they live their lives. I won’t get into specific dates or executions, but you can expect to see some of these new Nike concepts at retail this calendar year.
Vice President and CFO Don Blair followed up by singling out the Nike Plus line as a contibuter to Nike’s increased market share:
Our U.S. footwear business grew 2% in the third quarter, lapping 18% growth in last year’s third quarter. This year’s increase reflected mid single-digit growth in units and a lower average price per pair driven by changes in product mix. In the U.S., we continue to gain share driven by strong growth of performance running products, including Nike Plus and sport culture products, including both urban basketball and lifestyle models.
Nike reported that net income increased 8 percent to $350.8 million, or $1.37 per share, up from $325.8 million, or $1.24 per share in fiscal Q3 2006. Net revenue was $3.93 billion, up 9% from the same period last year.
Read the full transcript of Nike’s Q3 2007 conference call.
Related Articles:
