Bear Hunt: Nike Just Can't -- Yet By Suzanne Kapner Staff Reporter 3/18/98 8:32 PM ET
Nike (NKE:NYSE) dished up more dismal news to analysts during a conference call Wednesday evening following the company's third-quarter earnings release. Executives said the fourth quarter and following fiscal year will continue to pose a challenge for the Beaverton, Ore.-based company, despite restructuring efforts aimed at making Nike leaner and meaner.
For the period, Nike earned $73 million, or 25 cents a share, compared with $237 million, or 80 cents per share, a year ago. The numbers were in range with the company's preannouncement in February. Revenues for the quarter declined 8% to $2.2 billion, compared with $2.4 billion a year ago.
The company said earnings for the fourth quarter will likely fall into the single-digit range. Analysts, who have already reduced their earnings for the company's 1998 fiscal year several times, were expecting Nike to earn 17 cents per share for the fourth quarter, according to First Call.