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Nike CFO Falcone resigns
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January 9, 1998: 1:46 p.m. ET
Sneaker maker replaces CFO after series of earnings disappointments
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NEW YORK (CNNfn) - Nike Inc., the world's largest sneaker company, said Friday Robert Falcone has resigned as chief financial officer following a series of earnings disappointments.
In a statement, Nike said Falcone resigned to "pursue other opportunities." The company has named controller Robert Harold as interim chief financial and accounting officer. A search for a permanent replacement has begun.
The departure came after the Beaverton, Ore.-based footwear and apparel company disappointed Wall Street's projections for three straight quarters. By the end of November, Nike had inventory levels built up as high as $1.4 billion and needed to slash retail prices, thereby negatively affecting earnings.
"The company's forecasting system needs to be totally revamped. Given how inventories have gotten so bloated, something has to be done differently," said analyst Fay Landes, of Salomon Smith Barney.
Landes said the resignation of Falcone, who had held the post for six years, has every indication that the 50-year-old executive was asked to resign.
A spokesman for Nike was not immediately available and Falcone could not be reached for comment.
To be sure, guidance and forecasting for the financial community hasn't been the only managerial problem facing Nike, Landes said.
"Most investors would acknowledge that he's not done a very good job in terms of investor relations. But they have other management problems, such as a weak acquisition record," the analyst said.
Nike shares were down 1-1/8 to 41-1/16 in afternoon trade.
-- by staff writer Robert Liu
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