-
Revenues up 8 percent to $8 billion; 14 percent growth excluding
currency changes
-
Diluted earnings per share up 22 percent to $0.55
-
Worldwide futures orders up 12 percent; 17 percent growth excluding
currency changes
-
Inventories as of February 29, 2016 up 8 percent
BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal
2016 third quarter ended February 29, 2016. Strong consumer demand drove
revenue growth across the NIKE Brand portfolio. Diluted earnings per
share grew 22 percent, primarily due to revenue growth, a lower
effective tax rate and a lower average share count.
“In the third quarter, NIKE delivered robust and balanced growth across
our expansive, powerful portfolio,” said Mark Parker, President and CEO,
NIKE, Inc. “We grow by serving the athlete personally every day and, as
we unveiled last week, through breakthrough innovation that gives us a
foundation for growth for years to come. Combined with our strategic
investments, world-class execution and financial discipline, NIKE
consistently delivers value to our shareholders.”*
Third Quarter Income Statement Review
-
Revenues for NIKE, Inc. rose 8 percent to $8 billion, up
14 percent on a currency neutral basis.
-
Revenues for the NIKE Brand were $7.6 billion, up 15 percent on a
currency neutral basis driven by growth in every geography and
nearly all key categories.
-
Revenues for Converse were $489 million, down 5 percent on a
currency neutral basis, mainly driven by a major system go-live
that accelerated orders from the fourth quarter to the third
quarter in the prior year.
-
Gross margin was 45.9 percent, flat compared to prior
year. Gross margin benefitted from higher average selling prices and
continued growth in the higher margin Direct to Consumer (DTC)
business, which were offset by unfavorable changes in foreign currency
exchange rates, higher warehousing costs, and the impact of clearing
excess inventory in North America.
-
Selling and administrative expense increased 8 percent
to $2.6 billion. Demand creation expense was $804 million, up 10
percent compared to the prior year due to increased investments in
advertising, brand events, and digital brand marketing. Operating
overhead expense increased 7 percent to $1.8 billion, reflecting
growth in the DTC business and targeted investments in operational
infrastructure and consumer-focused digital capabilities.
-
Other income, net was $17 million, comprised primarily
of net foreign currency exchange gains. For the quarter, the Company
estimates the year-over-year change in foreign currency related gains
and losses included in other income, net, combined with the impact of
changes in currency exchange rates on the translation of foreign
currency-denominated profits, decreased pretax income by approximately
$97 million.
-
The effective tax rate was 16.3 percent, compared to
24.4 percent for the same period last year, primarily due to an
increase in the proportion of earnings from operations outside of the
U.S., which are generally subject to a lower tax rate, increased
recognition of foreign tax credits, adjustments in the prior year to
tax expense on intercompany transactions, and the retroactive and
permanent reinstatement of the U.S. research and development tax
credit.
-
Net income increased 20 percent to $950 million, driven
by strong revenue growth and a lower effective tax rate, while diluted earnings
per share increased 22 percent to $0.55, reflecting a 2
percent decline in the weighted average diluted common shares
outstanding.
February 29, 2016 Balance Sheet Review
-
Inventories for NIKE, Inc. were $4.6 billion, up 8
percent from February 28, 2015 driven by a 4 percent increase in NIKE
Brand wholesale unit inventories, growth in our DTC business and
increases in average product cost per unit, partially offset by
changes in the value of inventories due to foreign currency exchange
rates.
-
Cash and short-term investments were $5.1 billion, $255
million lower than last year as proceeds from the issuance of debt in
the second quarter and growth in net income were more than offset by
share repurchases, a reduction in collateral received from
counterparties to foreign currency hedging instruments, higher
dividends and investments in infrastructure and working capital.
Share Repurchases
During the third quarter, NIKE, Inc. repurchased a total of 24.3 million
shares for approximately $1.5 billion and concluded the Company’s
previous four-year, $8 billion share repurchase program approved by the
Board of Directors in September 2012. Under this program, the Company
purchased a total of 197.1 million shares at an average price of
approximately $40.58.
Following the completion of the previous program, the Company began
repurchases under the four-year, $12 billion program approved in
November 2015. Of the total shares repurchased during the third quarter,
11.1 million shares were purchased under this program for approximately
$649 million at an average price of $58.66.
Futures Orders
As of the end of the quarter, worldwide futures orders for NIKE Brand
athletic footwear and apparel scheduled for delivery from March 2016
through July 2016 were 12 percent higher than orders reported for the
same period last year. Excluding currency changes, futures orders would
have increased 17 percent.*
Conference Call
NIKE, Inc. management will host a conference call beginning at
approximately 2:00 p.m. PT on March 22, 2016, to review fiscal third
quarter results. The conference call will be broadcast live over the
Internet and can be accessed at http://investors.NIKE.com.
For those unable to listen to the live broadcast, an archived version
will be available at the same location through 9:00 p.m. PT, March 29,
2016.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world’s leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly-owned NIKE, Inc. subsidiary brands include
Converse, which designs, distributes and licenses casual sneakers,
apparel and accessories; and Hurley, which designs and distributes a
line of action sports and youth lifestyle apparel and accessories. For
more information, NIKE, Inc.’s earnings releases and other financial
information are available on the Internet at http://investors.NIKE.com
and individuals can follow @NIKE.
* The marked paragraphs contain forward-looking statements
that involve risks and uncertainties that could cause actual results to
differ materially. These risks and uncertainties are detailed from time
to time in reports filed by NIKE with the Securities and Exchange
Commission (SEC), including Forms 8-K, 10-Q, and 10-K. Some
forward-looking statements in this release concern changes in futures
orders that are not necessarily indicative of changes in total revenues
for subsequent periods due to the mix of futures, “at once” and closeout
orders, exchange rate fluctuations, order cancellations, discounts and
returns, which may vary significantly from quarter to quarter, and
because a portion of the business does not report futures orders.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
|
NINE MONTHS ENDED
|
|
%
|
(Dollars in millions, except per share data)
|
|
|
2/29/2016
|
|
|
2/28/2015
|
|
Change
|
|
|
|
2/29/2016
|
|
|
2/28/2015
|
|
Change
|
Revenues
|
|
$
|
8,032
|
|
$
|
7,460
|
|
8%
|
|
|
$
|
24,132
|
|
$
|
22,822
|
|
6%
|
Cost of sales
|
|
|
4,343
|
|
|
4,034
|
|
8%
|
|
|
|
12,947
|
|
|
12,348
|
|
5%
|
Gross profit
|
|
|
3,689
|
|
|
3,426
|
|
8%
|
|
|
|
11,185
|
|
|
10,474
|
|
7%
|
Gross margin
|
|
|
45.9%
|
|
|
45.9%
|
|
|
|
|
|
46.3%
|
|
|
45.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
|
804
|
|
|
731
|
|
10%
|
|
|
|
2,405
|
|
|
2,394
|
|
0%
|
Operating overhead expense
|
|
|
1,762
|
|
|
1,648
|
|
7%
|
|
|
|
5,298
|
|
|
4,903
|
|
8%
|
Total selling and administrative expense
|
|
|
2,566
|
|
|
2,379
|
|
8%
|
|
|
|
7,703
|
|
|
7,297
|
|
6%
|
% of revenue
|
|
|
31.9%
|
|
|
31.9%
|
|
|
|
|
|
31.9%
|
|
|
32.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
5
|
|
|
6
|
|
—
|
|
|
|
14
|
|
|
24
|
|
—
|
Other (income) expense, net
|
|
|
(17)
|
|
|
(5)
|
|
—
|
|
|
|
(82)
|
|
|
—
|
|
—
|
Income before income taxes
|
|
|
1,135
|
|
|
1,046
|
|
9%
|
|
|
|
3,550
|
|
|
3,153
|
|
13%
|
Income tax expense
|
|
|
185
|
|
|
255
|
|
-27%
|
|
|
|
636
|
|
|
745
|
|
-15%
|
Effective tax rate
|
|
|
16.3%
|
|
|
24.4%
|
|
|
|
|
|
17.9%
|
|
|
23.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
950
|
|
$
|
791
|
|
20%
|
|
|
$
|
2,914
|
|
$
|
2,408
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.56
|
|
$
|
0.46
|
|
22%
|
|
|
$
|
1.71
|
|
$
|
1.39
|
|
23%
|
Diluted
|
|
$
|
0.55
|
|
$
|
0.45
|
|
22%
|
|
|
$
|
1.67
|
|
$
|
1.36
|
|
23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,693.8
|
|
|
1,722.9
|
|
|
|
|
|
1,703.2
|
|
|
1,726.3
|
|
|
Diluted
|
|
|
1,737.3
|
|
|
1,767.7
|
|
|
|
|
|
1,748.5
|
|
|
1,771.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.16
|
|
$
|
0.14
|
|
|
|
|
$
|
0.46
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
February 29,
|
|
|
February 28,
|
|
|
|
(Dollars in millions)
|
|
2016
|
|
|
2015
|
|
|
% Change
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
3,044
|
|
|
$
|
3,015
|
|
|
1%
|
Short-term investments
|
|
|
2,062
|
|
|
|
2,346
|
|
|
-12%
|
Accounts receivable, net
|
|
|
3,368
|
|
|
|
3,294
|
|
|
2%
|
Inventories
|
|
|
4,590
|
|
|
|
4,246
|
|
|
8%
|
Deferred income taxes
|
|
|
410
|
|
|
|
328
|
|
|
25%
|
Prepaid expenses and other current assets
|
|
|
1,782
|
|
|
|
1,978
|
|
|
-10%
|
Total current assets
|
|
|
15,256
|
|
|
|
15,207
|
|
|
0%
|
Property, plant and equipment, net
|
|
|
3,329
|
|
|
|
2,862
|
|
|
16%
|
Identifiable intangible assets, net
|
|
|
281
|
|
|
|
281
|
|
|
0%
|
Goodwill
|
|
|
131
|
|
|
|
131
|
|
|
0%
|
Deferred income taxes and other assets
|
|
|
1,990
|
|
|
|
2,060
|
|
|
-3%
|
TOTAL ASSETS
|
|
$
|
20,987
|
|
|
$
|
20,541
|
|
|
2%
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
7
|
|
|
$
|
108
|
|
|
-94%
|
Notes payable
|
|
|
—
|
|
|
|
61
|
|
|
-100%
|
Accounts payable
|
|
|
1,714
|
|
|
|
1,821
|
|
|
-6%
|
Accrued liabilities
|
|
|
3,224
|
|
|
|
3,563
|
|
|
-10%
|
Income taxes payable
|
|
|
35
|
|
|
|
33
|
|
|
6%
|
Total current liabilities
|
|
|
4,980
|
|
|
|
5,586
|
|
|
-11%
|
Long-term debt
|
|
|
2,048
|
|
|
|
1,082
|
|
|
89%
|
Deferred income taxes and other liabilities
|
|
|
1,659
|
|
|
|
1,505
|
|
|
10%
|
Redeemable preferred stock
|
|
|
—
|
|
|
|
—
|
|
|
—
|
Shareholders' equity
|
|
|
12,300
|
|
|
|
12,368
|
|
|
-1%
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
20,987
|
|
|
$
|
20,541
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
DIVISIONAL REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
Currency
|
|
|
NINE MONTHS ENDED
|
|
%
|
|
Currency
|
(Dollars in millions)
|
|
|
2/29/2016
|
|
|
2/28/20151
|
|
Change
|
|
Changes2
|
|
|
|
2/29/2016
|
|
|
2/28/20151
|
|
Change
|
|
Changes2
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
2,404
|
|
$
|
2,081
|
|
16%
|
|
16%
|
|
|
$
|
6,932
|
|
$
|
6,189
|
|
12%
|
|
13%
|
Apparel
|
|
|
1,115
|
|
|
988
|
|
13%
|
|
14%
|
|
|
|
3,583
|
|
|
3,223
|
|
11%
|
|
12%
|
Equipment
|
|
|
164
|
|
|
185
|
|
-11%
|
|
-11%
|
|
|
|
514
|
|
|
596
|
|
-14%
|
|
-13%
|
Total
|
|
|
3,683
|
|
|
3,254
|
|
13%
|
|
14%
|
|
|
|
11,029
|
|
|
10,008
|
|
10%
|
|
11%
|
Western Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
985
|
|
|
985
|
|
0%
|
|
10%
|
|
|
|
2,958
|
|
|
2,976
|
|
-1%
|
|
14%
|
Apparel
|
|
|
392
|
|
|
361
|
|
9%
|
|
19%
|
|
|
|
1,217
|
|
|
1,242
|
|
-2%
|
|
12%
|
Equipment
|
|
|
65
|
|
|
67
|
|
-3%
|
|
7%
|
|
|
|
207
|
|
|
220
|
|
-6%
|
|
7%
|
Total
|
|
|
1,442
|
|
|
1,413
|
|
2%
|
|
12%
|
|
|
|
4,382
|
|
|
4,438
|
|
-1%
|
|
13%
|
Central & Eastern Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
237
|
|
|
187
|
|
27%
|
|
46%
|
|
|
|
658
|
|
|
590
|
|
12%
|
|
34%
|
Apparel
|
|
|
102
|
|
|
113
|
|
-10%
|
|
5%
|
|
|
|
361
|
|
|
397
|
|
-9%
|
|
11%
|
Equipment
|
|
|
20
|
|
|
21
|
|
-5%
|
|
4%
|
|
|
|
67
|
|
|
74
|
|
-9%
|
|
9%
|
Total
|
|
|
359
|
|
|
321
|
|
12%
|
|
29%
|
|
|
|
1,086
|
|
|
1,061
|
|
2%
|
|
23%
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
719
|
|
|
562
|
|
28%
|
|
33%
|
|
|
|
1,918
|
|
|
1,465
|
|
31%
|
|
34%
|
Apparel
|
|
|
235
|
|
|
212
|
|
11%
|
|
15%
|
|
|
|
787
|
|
|
680
|
|
16%
|
|
19%
|
Equipment
|
|
|
28
|
|
|
27
|
|
4%
|
|
4%
|
|
|
|
101
|
|
|
93
|
|
9%
|
|
9%
|
Total
|
|
|
982
|
|
|
801
|
|
23%
|
|
27%
|
|
|
|
2,806
|
|
|
2,238
|
|
25%
|
|
29%
|
Japan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
133
|
|
|
99
|
|
34%
|
|
37%
|
|
|
|
383
|
|
|
307
|
|
25%
|
|
40%
|
Apparel
|
|
|
52
|
|
|
46
|
|
13%
|
|
16%
|
|
|
|
158
|
|
|
167
|
|
-5%
|
|
6%
|
Equipment
|
|
|
20
|
|
|
21
|
|
-5%
|
|
0%
|
|
|
|
48
|
|
|
51
|
|
-6%
|
|
5%
|
Total
|
|
|
205
|
|
|
166
|
|
23%
|
|
27%
|
|
|
|
589
|
|
|
525
|
|
12%
|
|
26%
|
Emerging Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
596
|
|
|
655
|
|
-9%
|
|
9%
|
|
|
|
1,940
|
|
|
2,010
|
|
-3%
|
|
15%
|
Apparel
|
|
|
228
|
|
|
240
|
|
-5%
|
|
14%
|
|
|
|
721
|
|
|
772
|
|
-7%
|
|
11%
|
Equipment
|
|
|
55
|
|
|
60
|
|
-8%
|
|
10%
|
|
|
|
168
|
|
|
182
|
|
-8%
|
|
12%
|
Total
|
|
|
879
|
|
|
955
|
|
-8%
|
|
11%
|
|
|
|
2,829
|
|
|
2,964
|
|
-5%
|
|
14%
|
Global Brand Divisions3
|
|
|
17
|
|
|
29
|
|
-41%
|
|
-35%
|
|
|
|
61
|
|
|
85
|
|
-28%
|
|
-19%
|
Total NIKE Brand
|
|
|
7,567
|
|
|
6,939
|
|
9%
|
|
15%
|
|
|
|
22,782
|
|
|
21,319
|
|
7%
|
|
14%
|
Converse
|
|
|
489
|
|
|
538
|
|
-9%
|
|
-5%
|
|
|
|
1,442
|
|
|
1,547
|
|
-7%
|
|
-2%
|
Corporate4
|
|
|
(24)
|
|
|
(17)
|
|
—
|
|
—
|
|
|
|
(92)
|
|
|
(44)
|
|
—
|
|
—
|
Total NIKE, Inc. Revenues
|
|
$
|
8,032
|
|
$
|
7,460
|
|
8%
|
|
14%
|
|
|
$
|
24,132
|
|
$
|
22,822
|
|
6%
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NIKE Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
5,074
|
|
$
|
4,569
|
|
11%
|
|
18%
|
|
|
$
|
14,789
|
|
$
|
13,537
|
|
9%
|
|
17%
|
Apparel
|
|
|
2,124
|
|
|
1,960
|
|
8%
|
|
14%
|
|
|
|
6,827
|
|
|
6,481
|
|
5%
|
|
12%
|
Equipment
|
|
|
352
|
|
|
381
|
|
-8%
|
|
-2%
|
|
|
|
1,105
|
|
|
1,216
|
|
-9%
|
|
-2%
|
Global Brand Divisions3
|
|
|
17
|
|
|
29
|
|
-41%
|
|
-35%
|
|
|
|
61
|
|
|
85
|
|
-28%
|
|
-19%
|
|
1 Certain prior year amounts have been reclassified to
conform to fiscal 2016 presentation. These changes had no impact
on previously reported results of operations or shareholders'
equity.
|
|
2 Fiscal 2016 results have been restated using fiscal
2015 exchange rates for the comparative period to enhance the
visibility of the underlying business trends excluding the impact
of translation arising from foreign currency exchange rate
fluctuations.
|
|
3 Global Brand Divisions revenues are primarily
attributable to NIKE Brand licensing businesses that are not part
of a geographic operating segment.
|
|
4 Corporate revenues primarily consist of foreign
currency hedge gains and losses related to revenues generated by
entities within the NIKE Brand geographic operating segments and
Converse but managed through our central foreign exchange risk
management program.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
EARNINGS BEFORE INTEREST AND TAXES1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
|
NINE MONTHS ENDED
|
|
%
|
(Dollars in millions)
|
|
|
2/29/2016
|
|
|
2/28/20152
|
|
Change
|
|
|
|
2/29/2016
|
|
|
2/28/20152
|
|
Change
|
North America
|
|
$
|
903
|
|
$
|
830
|
|
9%
|
|
|
$
|
2,827
|
|
$
|
2,585
|
|
9%
|
Western Europe
|
|
|
334
|
|
|
333
|
|
0%
|
|
|
|
1,126
|
|
|
998
|
|
13%
|
Central & Eastern Europe
|
|
|
69
|
|
|
52
|
|
33%
|
|
|
|
243
|
|
|
178
|
|
37%
|
Greater China
|
|
|
358
|
|
|
251
|
|
43%
|
|
|
|
1,015
|
|
|
727
|
|
40%
|
Japan
|
|
|
36
|
|
|
22
|
|
64%
|
|
|
|
119
|
|
|
62
|
|
92%
|
Emerging Markets
|
|
|
202
|
|
|
234
|
|
-14%
|
|
|
|
701
|
|
|
626
|
|
12%
|
Global Brand Divisions3
|
|
|
(625)
|
|
|
(552)
|
|
-13%
|
|
|
|
(1,874)
|
|
|
(1,640)
|
|
-14%
|
TOTAL NIKE BRAND
|
|
|
1,277
|
|
|
1,170
|
|
9%
|
|
|
|
4,157
|
|
|
3,536
|
|
18%
|
Converse
|
|
|
127
|
|
|
163
|
|
-22%
|
|
|
|
359
|
|
|
437
|
|
-18%
|
Corporate4
|
|
|
(264)
|
|
|
(281)
|
|
6%
|
|
|
|
(952)
|
|
|
(796)
|
|
-20%
|
TOTAL EARNINGS BEFORE INTEREST AND TAXES
|
|
$
|
1,140
|
|
$
|
1,052
|
|
8%
|
|
|
$
|
3,564
|
|
$
|
3,177
|
|
12%
|
|
1 The Company evaluates performance of individual
operating segments based on earnings before interest and taxes
(commonly referred to as “EBIT”), which represents net income before
interest expense (income), net and income taxes.
|
|
2 Certain prior year amounts have been reclassified to
conform to fiscal 2016 presentation. These changes had no impact
on previously reported results of operations or shareholders'
equity.
|
|
3 Global Brand Divisions primarily represent demand
creation, operating overhead and product creation and design
expenses that are centrally managed for the NIKE Brand. Revenues
for Global Brand Divisions are primarily attributable to NIKE
Brand licensing businesses that are not part of a geographic
operating segment.
|
|
4 Corporate consists largely of unallocated general and
administrative expenses, including expenses associated with
centrally managed departments; depreciation and amortization
related to the Company’s corporate headquarters; unallocated
insurance, benefit and compensation programs, including
stock-based compensation; and certain foreign currency gains and
losses, including certain hedge gains and losses.
|
|
|
|
|
|
|
|
NIKE, Inc.
|
NIKE BRAND REPORTED FUTURES GROWTH BY GEOGRAPHY1
|
As of February 29, 2016
|
|
|
|
|
|
|
|
|
Reported Futures
|
|
|
Excluding Currency
|
|
|
Orders
|
|
|
Changes2
|
North America
|
|
10%
|
|
|
10%
|
Western Europe
|
|
16%
|
|
|
23%
|
Central & Eastern Europe
|
|
5%
|
|
|
14%
|
Greater China
|
|
28%
|
|
|
36%
|
Japan
|
|
23%
|
|
|
24%
|
Emerging Markets
|
|
-3%
|
|
|
14%
|
Total NIKE Brand Reported Futures
|
|
12%
|
|
|
17%
|
|
1 Futures orders for NIKE Brand footwear and apparel
scheduled for delivery from March 2016 through July 2016. NIKE Brand
reported futures consist of (1) orders from external wholesale
customers and (2) internal orders from our DTC in-line stores and
e-commerce operations which are charged at prices that are
comparable to prices charged to external wholesale customers. The
U.S. Dollar futures orders amount is calculated based upon our
internal forecast of the currency exchange rates under which our
revenues will be translated during this period.
|
|
The reported futures orders growth is not necessarily indicative of
our expectation of revenue growth during this period. This is due to
year-over-year changes in shipment timing, changes in the mix of
orders between futures and at-once orders and because the
fulfillment of certain orders may fall outside of the schedule noted
above. In addition, exchange rate fluctuations as well as differing
levels of order cancellations, discounts and returns can cause
differences in the comparisons between futures orders and actual
revenues. Moreover, a portion of our revenue is not derived from
futures orders, including sales of at-once and closeout NIKE Brand
footwear and apparel, all sales of NIKE Brand equipment, the
difference between retail sales and internal orders from our DTC
in-line stores and e-commerce operations, and sales from Converse,
NIKE Golf and Hurley.
|
|
2 Reported futures have been restated using prior year
exchange rates for the comparative period to enhance the visibility
of the underlying business trends excluding the impact of foreign
currency exchange rate fluctuations.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160322006510/en/
Source: NIKE, Inc.