10:00AM New York—Nike Inc. reported fourth quarter revenue up 16% to $5.1 billion on higher overseas sales.

Worldwide Growth Drives Revenue

Nike Inc. (NKE: chart) said Wednesday that fourth quarter revenue rose 16% to $5.1 billion from $4.4 billion a year earlier on robust overseas growth. Growth in the core U.S market slackened due to weaker demand and the recession in the economy.

The world''s largest athletic footwear and apparel maker said changes in currency exchange rates increased revenue by 7 percentage points for the quarter.

Revenue grew only 4% in the U.S., 19% in the European region, 39% in the Asia Pacific region and 30% in the Americas region.

Other businesses, including Hurley International, the new acquisition Umbro and Nike Golf, saw 15% revenue growth overall.

Global orders for delivery of shoes and apparel from this month through to November 2008 rose 11% to $8.8 billion, and currency effects increased reported orders by 3 basis points.

In the U.S, future orders remained flat on weakening consumer expenditure. Orders gained 10% in Europe, including Middles East and Africa and were up 31% in the Asia Pacific region. The Americas posted a growth of 30%.

For the fiscal year to May 31, Nike said revenues gained 14% to $18.6 billion compared to $16.3 billion in 2007.

Earnings Increase in Bitter Economy

Nike posted better than expected net profit increase of 12% to $490.5 million or $0.98 per share for the second quarter ended May 31 from $437.9 million or $0.86 per share a year earlier.

Analysts surveyed by Thomson Financial were looking for earnings of 96 cents per share for the quarter.

Included in the earnings is a gain of $29 million earned from the disposal of the Starter brand that was sold for $60 million cash.

Nike also gained $32 million from the sale of Nike Bauer Hockey for $189 million in cash, it said.

The company completed also the purchase of Umbro for $576 million including transaction fees.

Gross margins rose to 45.8% from 43.8% in the three months to May and were up to 45% in the year, from 43.9% previously.

Nike said selling and administrative expenses rose to 33.1% of revenue from 29% last year while taxes lowered to 24.3% from 33.5% due to higher earnings from overseas markets.

U.S. footwear prices declined 2.2% in December 2007 and that for apparel were down 2.4%.

For the year, net earnings increased 26% to $1.9 billion or $3.74 per share from $1.5 billion or $2.93 per share prior year.

Global inventories rose 15% to $2.4 billion at year-end, the company said and cash and short-term investments remained flat at $2.8 billion.