Nike earnings slip 13%

Nike Inc., the world’s largest shoe maker, on Thursday said fiscal first-quarter profit slid 13 percent as stock option expenses and sales costs outstripped revenue growth, but results nevertheless topped Wall Street’s expectations.

For the quarter ended Aug. 31, net income dropped to $377.2 million, or $1.47 per share, from $432.3 million, or $1.61 per share, in the prior-year period.

Nike said the recent quarter included $40.8 million in stock-option costs, which lowered per-share earnings 16 cents. Excluding stock option expense, first-quarter net income declined 3 percent.

Revenue rose 9 percent to $4.19 billion, from $3.86 billion a year ago. By region, U.S. revenue climbed 6 percent to $1.6 billion; European region sales grew 4 percent to $1.3 billion and sales in the Asia Pacific and Americas regions jumped 13 percent each, to $518.4 million and $242.5 million, respectively.

“Palm Inc., maker of Treo smart phones, said Thursday its profit for its fiscal first quarter fell 9 percent as it accounted for stock option expenses for the first time and grappled with slow sales growth amid tougher competition.

For the three months ended Sept. 1, Palm said it earned $16.5 million, or 16 cents per share, compared to $18.2 million, or 18 cents per share, a year ago.

Excluding $6.7 million in stock-based compensation and other one-time items, Palm said it would have earned $21.5 million, or 21 cents per share. In the year-ago period, Palm’s adjusted net income was $13.7 million, or 13 cents per share.

Revenue was $355.8 million, up 4 percent from $342.2 million in the year-ago period.

“Foodmaker General Mills Inc. turned in a profit that beat Wall Street expectations on Thursday, despite expensive wheat and gasoline prices that didn’t come down in time to help the quarter.

General Mills turned in a solid sales performance across a range of products that include Cheerios and Lucky Charms cereal, Yoplait yogurt, and Pillsbury baked goods. Cereal sales rose 4 percent, and yogurt sales jumped 10 percent.

All told, General Mills said first-quarter profit rose 5.9 percent, to $267 million, or 74 cents per share, handily beating the 67 cents per share predicted by analysts polled by Thomson Financial.

“FedEx Corp. said Thursday its first-quarter profit rose 40 percent, driven by strong demand for ground and international express shipments.

Memphis-based FedEx also said a new contract it has tentatively struck with its pilots union will reduce full-year profit by 20 cents per share. Excluding that cost, FedEx raised its outlook for fiscal 2007.

For the quarter ended Aug. 31, the company reported net income of $475 million, or $1.53 per share, versus a prior-year profit of $339 million, or $1.10 per share. Revenue rose 11 percent to $8.54 billion from $7.71 billion in the year-earlier period.

“ Rite Aid Corp., the nation’s third-largest drugstore chain, on Thursday said increased sales helped narrow its second-quarter loss.

Rite Aid turned in the results just four weeks after it announced the purchase of 1,858 Brooks and Eckerd drugstores in an attempt to keep pace with the rapidly expanding CVS Corp. and Walgreen Co.

However, shares of Rite Aid slid 24 cents, or 5 percent, to close at $4.52 Thursday on the New York Stock Exchange after Wal-Mart announced a pilot program to sell generic drugs for $4 for a monthly prescription.