On the eve of the summer Olympics, Nike’s fourth-quarter results weren’t a personal best for the athletic gear maker.
Nike Inc. said its fourth-quarter net income fell 8 percent as high product costs, a restructuring charge and an unexpected customs assessment offset revenue growth across the company.
The results fell short of analysts’ expectations. It was a rare miss for the world’s largest athletic shoe and clothing company, which has beaten analyst expectations in 17 of the past 18 quarters. Nike’s net income fell to $549 million, or $1.17 per share, compared with $594 million, or $1.24 per share, a year earlier. Analysts were expecting $1.37 per share, according to FactSet.
Revenue rose 12 percent to $6.47 billion, while analysts expected $6.51 billion. Nike brand revenue rose 15 percent.
Revenue increased in all regions, but growth was weakest in Western Europe, where it rose 2 percent to $1.04 billion. In North America, Nike’s revenue rose 13 percent to $2.42 billion. In China, revenue rose 18 percent to $667 million.
For the fiscal year, net income rose 4 percent to $2.22 billion, or $4.73 per share, from $2.13 billion, or $4.39 per share last year. Revenue rose 16 percent to $24.13 billion from $20.87 billion last year.
Nike, based in Beaverton, Ore., has been focusing on its most profitable businesses to drive growth. In May, it said Umbro soccer gear and Cole Haan shoes and accessories will be divested to cut costs.