-
Revenues from continuing operations up 8 percent to $6.4 billion
-
Diluted earnings per share from continuing operations up 4 percent to
$0.59
-
Worldwide futures orders up 12 percent, 13 percent growth excluding
currency changes
-
Inventories as of November 30, 2013 up 11 percent
BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal
2014 second quarter ended November 30, 2013. Earnings per share for the
quarter were up 4 percent due to higher revenues as a result of strong
demand for NIKE, Inc. brands, gross margin expansion, and a lower tax
rate partially offset by the impact of higher SG&A investments in NIKE,
Inc. brands and business capabilities.
“Our strong second quarter results show why NIKE leads the industry,”
said
Mark Parker
, President and CEO of NIKE, Inc. “Our powerful
portfolio fuels growth across our categories and geographies. Because we
never stop innovating, we enhance our ability to serve the athlete,
inspire consumers and elevate the marketplace. We will continue to seize
the best opportunities to drive sustainable, profitable growth for our
shareholders.”*
Second Quarter Continuing Operations Income Statement Review
-
Revenues for NIKE, Inc. increased 8 percent to
$6.4 billion, up 9 percent on a currency neutral basis.
-
Revenues for the NIKE Brand were $6.1 billion, up 9 percent on a
currency neutral basis, with growth in every product type,
geography and key category.
-
Revenues for Converse were $360 million, up 11 percent on a
currency neutral basis, driven by strong performance in our
largest owned markets: North America, the United Kingdom, and
China.
-
Gross margin increased 140 basis points to 43.9 percent.
Gross margin benefitted from a shift in the mix of the Company’s
revenues to higher margin products and businesses, higher average
prices, easing raw materials product input costs and continued
strength in the higher margin Direct-to-Consumer business. These
benefits were partially offset by unfavorable changes in foreign
exchange rates and higher labor product input costs.
-
Selling and administrative expense grew 14 percent to
$2.1 billion. Demand creation expense was $691 million, up 13 percent
versus relatively low levels in the prior year, driven by marketing
support for key product launches, consumer running events and upcoming
global sporting events, including the World Cup and Winter Olympics.
Operating overhead expense increased 14 percent to $1.4 billion due to
investments in digital innovation and other growth businesses, as well
as higher Direct to Consumer costs driven by growth and new store
openings.
-
Other expense, net was $13 million, comprised primarily
of a charge relating to an adverse legal judgment in Western Europe
and foreign currency exchange losses. For the quarter, the Company
estimates the year-over-year change in foreign currency related gains
and losses included in other expense (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 $32 million.
-
The effective tax rate was 25.1 percent, compared to
26.8 percent for the same period last year, an improvement primarily
due to an increase in the amount of earnings from non-U.S. operations,
which are generally subject to a lower tax rate.
-
Net income increased 3 percent to $537 million while diluted
earnings per share increased 4 percent to $0.59, reflecting a
slight decline in the weighted average diluted common shares
outstanding.
November 30, 2013 Balance Sheet Review for Continuing Operations
-
Inventories for NIKE, Inc. were $3.7 billion, up 11
percent from November 30, 2012. NIKE Brand wholesale unit inventories
increased 7 percent to support future demand. Changes in foreign
currency exchange rates and product cost drove an approximate 4
percentage point net increase in NIKE, Inc. inventory growth.
-
Cash and short-term investments were $5.2 billion, $1.7
billion higher than last year as a result of proceeds from the
issuance of debt and sale of the Umbro and
Cole Haan
businesses in the
prior fiscal year, as well as higher net income.
Share Repurchases
During the second quarter, NIKE, Inc. repurchased a total of 5.5 million
shares for approximately $402 million as part of the four-year, $8
billion program approved by the Board of Directors in September 2012. As
of the end of the second quarter, a total of 29.2 million shares had
been repurchased under this program at a cost of approximately $1.7
billion, an average of $58.82 per share.
Futures Orders
As of the end of the quarter, worldwide futures orders for NIKE Brand
athletic footwear and apparel scheduled for delivery from December 2013
through April 2014 totaled $10.4 billion, 12 percent higher than orders
reported for the same period last year, and 13 percent higher on a
currency neutral basis.*
Conference Call
NIKE management will host a conference call beginning at approximately
2:00 p.m. PT on December 19, 2013, to review second quarter results. The
conference call will be broadcast live over the Internet and can be
accessed at http://investors.nikeinc.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, December
26, 2013.
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. subsidiaries include
Converse Inc., which designs, markets and distributes athletic lifestyle
footwear, apparel and accessories and Hurley International LLC, which
designs, markets and distributes surf and youth lifestyle footwear,
apparel and accessories. For more information, NIKE’s earnings releases
and other financial information are available on the Internet at http://investors.nikeinc.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 S.E.C., 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 and
“at once” orders, exchange rate fluctuations, order cancellations,
discounts and returns, which may vary significantly from quarter to
quarter, and because a significant portion of the business does not
report futures orders.
(Additional Tables Follow)
NIKE, Inc.
|
CONSOLIDATED STATEMENTS OF INCOME
|
For the period ended November 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
SIX MONTHS ENDED
|
|
|
%
|
(Dollars in millions, except per share data)
|
|
|
|
11/30/2013
|
|
|
11/30/2012
|
|
|
Change
|
|
|
11/30/2013
|
|
|
11/30/2012
|
|
|
Change
|
Income from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
$ 6,431
|
|
|
|
|
$ 5,955
|
|
|
|
8
|
%
|
|
|
|
$ 13,402
|
|
|
|
|
$ 12,429
|
|
|
|
8
|
%
|
Cost of sales
|
|
|
|
|
3,605
|
|
|
|
|
3,425
|
|
|
|
5
|
%
|
|
|
|
7,444
|
|
|
|
|
7,071
|
|
|
|
5
|
%
|
Gross profit
|
|
|
|
|
2,826
|
|
|
|
|
2,530
|
|
|
|
12
|
%
|
|
|
|
5,958
|
|
|
|
|
5,358
|
|
|
|
11
|
%
|
Gross margin
|
|
|
|
|
43.9
|
%
|
|
|
|
42.5
|
%
|
|
|
|
|
|
|
44.5
|
%
|
|
|
|
43.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
|
|
|
691
|
|
|
|
|
613
|
|
|
|
13
|
%
|
|
|
|
1,422
|
|
|
|
|
1,484
|
|
|
|
-4
|
%
|
Operating overhead expense
|
|
|
|
|
1,397
|
|
|
|
|
1,223
|
|
|
|
14
|
%
|
|
|
|
2,722
|
|
|
|
|
2,411
|
|
|
|
13
|
%
|
Total selling and administrative expense
|
|
|
|
|
2,088
|
|
|
|
|
1,836
|
|
|
|
14
|
%
|
|
|
|
4,144
|
|
|
|
|
3,895
|
|
|
|
6
|
%
|
% of revenue
|
|
|
|
|
32.5
|
%
|
|
|
|
30.8
|
%
|
|
|
|
|
|
|
30.9
|
%
|
|
|
|
31.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
|
|
8
|
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
|
16
|
|
|
|
|
(4
|
)
|
|
|
-
|
|
Other expense (income), net
|
|
|
|
|
13
|
|
|
|
|
(17
|
)
|
|
|
-
|
|
|
|
|
41
|
|
|
|
|
(45
|
)
|
|
|
-
|
|
Income before income taxes
|
|
|
|
|
717
|
|
|
|
|
712
|
|
|
|
1
|
%
|
|
|
|
1,757
|
|
|
|
|
1,512
|
|
|
|
16
|
%
|
Income taxes
|
|
|
|
|
180
|
|
|
|
|
191
|
|
|
|
-6
|
%
|
|
|
|
440
|
|
|
|
|
406
|
|
|
|
8
|
%
|
Effective tax rate
|
|
|
|
|
25.1
|
%
|
|
|
|
26.8
|
%
|
|
|
|
|
|
|
25.0
|
%
|
|
|
|
26.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME FROM CONTINUING OPERATIONS
|
|
|
|
|
537
|
|
|
|
|
521
|
|
|
|
3
|
%
|
|
|
|
1,317
|
|
|
|
|
1,106
|
|
|
|
19
|
%
|
NET LOSS FROM DISCONTINUED OPERATIONS
|
|
|
|
|
-
|
|
|
|
|
(137
|
)
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(155
|
)
|
|
|
-
|
|
NET INCOME
|
|
|
|
|
$ 537
|
|
|
|
|
$ 384
|
|
|
|
40
|
%
|
|
|
|
$ 1,317
|
|
|
|
|
$ 951
|
|
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
|
|
|
$ 0.60
|
|
|
|
|
$ 0.58
|
|
|
|
3
|
%
|
|
|
|
$ 1.48
|
|
|
|
|
$ 1.23
|
|
|
|
20
|
%
|
Diluted earnings per common share
|
|
|
|
|
$ 0.59
|
|
|
|
|
$ 0.57
|
|
|
|
4
|
%
|
|
|
|
$ 1.45
|
|
|
|
|
$ 1.20
|
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
|
|
|
$ -
|
|
|
|
|
$ (0.15
|
)
|
|
|
-
|
|
|
|
|
$ -
|
|
|
|
|
$ (0.18
|
)
|
|
|
-
|
|
Diluted earnings per common share
|
|
|
|
|
$ -
|
|
|
|
|
$ (0.15
|
)
|
|
|
-
|
|
|
|
|
$ -
|
|
|
|
|
$ (0.16
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
888.0
|
|
|
|
|
897.0
|
|
|
|
|
|
|
|
888.7
|
|
|
|
|
901.4
|
|
|
|
|
Diluted
|
|
|
|
|
910.6
|
|
|
|
|
913.1
|
|
|
|
|
|
|
|
910.7
|
|
|
|
|
918.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
|
|
|
$ 0.24
|
|
|
|
|
$ 0.21
|
|
|
|
|
|
|
|
$ 0.45
|
|
|
|
|
$ 0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
As of November 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 30,
|
|
|
November 30,
|
|
|
|
(Dollars in millions)
|
|
|
|
2013
|
|
|
2012
|
|
|
% Change
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
|
|
|
$ 2,086
|
|
|
|
$ 2,291
|
|
|
-9
|
%
|
Short-term investments
|
|
|
|
|
3,101
|
|
|
|
1,234
|
|
|
151
|
%
|
Accounts receivable, net
|
|
|
|
|
3,208
|
|
|
|
3,188
|
|
|
1
|
%
|
Inventories
|
|
|
|
|
3,695
|
|
|
|
3,318
|
|
|
11
|
%
|
Deferred income taxes
|
|
|
|
|
315
|
|
|
|
327
|
|
|
-4
|
%
|
Prepaid expenses and other current assets
|
|
|
|
|
1,202
|
|
|
|
733
|
|
|
64
|
%
|
Assets of discontinued operations
|
|
|
|
|
-
|
|
|
|
344
|
|
|
-
|
|
Total current assets
|
|
|
|
|
13,607
|
|
|
|
11,435
|
|
|
19
|
%
|
Property, plant and equipment
|
|
|
|
|
5,869
|
|
|
|
5,310
|
|
|
11
|
%
|
Less accumulated depreciation
|
|
|
|
|
3,224
|
|
|
|
3,052
|
|
|
6
|
%
|
Property, plant and equipment, net
|
|
|
|
|
2,645
|
|
|
|
2,258
|
|
|
17
|
%
|
Identifiable intangible assets, net
|
|
|
|
|
385
|
|
|
|
374
|
|
|
3
|
%
|
Goodwill
|
|
|
|
|
131
|
|
|
|
131
|
|
|
0
|
%
|
Deferred income taxes and other assets
|
|
|
|
|
1,052
|
|
|
|
973
|
|
|
8
|
%
|
TOTAL ASSETS
|
|
|
|
|
$ 17,820
|
|
|
|
$ 15,171
|
|
|
17
|
%
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
|
$ 7
|
|
|
|
$ 58
|
|
|
-88
|
%
|
Notes payable
|
|
|
|
|
180
|
|
|
|
100
|
|
|
80
|
%
|
Accounts payable
|
|
|
|
|
1,612
|
|
|
|
1,519
|
|
|
6
|
%
|
Accrued liabilities
|
|
|
|
|
2,005
|
|
|
|
1,879
|
|
|
7
|
%
|
Income taxes payable
|
|
|
|
|
47
|
|
|
|
45
|
|
|
4
|
%
|
Liabilities of discontinued operations
|
|
|
|
|
-
|
|
|
|
198
|
|
|
-
|
|
Total current liabilities
|
|
|
|
|
3,851
|
|
|
|
3,799
|
|
|
1
|
%
|
Long-term debt
|
|
|
|
|
1,201
|
|
|
|
170
|
|
|
606
|
%
|
Deferred income taxes and other liabilities
|
|
|
|
|
1,424
|
|
|
|
1,188
|
|
|
20
|
%
|
Redeemable preferred stock
|
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
Shareholders' equity
|
|
|
|
|
11,344
|
|
|
|
10,014
|
|
|
13
|
%
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
$ 17,820
|
|
|
|
$ 15,171
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
DIVISIONAL REVENUES1
|
For the period ended November 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
Currency
|
|
|
SIX MONTHS ENDED
|
|
|
%
|
|
|
Currency
|
(Dollars in millions)
|
|
|
|
11/30/2013
|
|
|
11/30/2012
|
|
|
Change
|
|
|
Changes 2
|
|
|
11/30/2013
|
|
|
11/30/2012
|
|
|
Change
|
|
|
Changes 2
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
$ 1,627
|
|
|
|
$ 1,480
|
|
|
|
10
|
%
|
|
|
10
|
%
|
|
|
|
$ 3,531
|
|
|
|
$ 3,225
|
|
|
|
9
|
%
|
|
|
10
|
%
|
Apparel
|
|
|
|
|
986
|
|
|
|
903
|
|
|
|
9
|
%
|
|
|
9
|
%
|
|
|
|
1,995
|
|
|
|
1,827
|
|
|
|
9
|
%
|
|
|
9
|
%
|
Equipment
|
|
|
|
|
188
|
|
|
|
181
|
|
|
|
4
|
%
|
|
|
3
|
%
|
|
|
|
410
|
|
|
|
378
|
|
|
|
8
|
%
|
|
|
9
|
%
|
Total
|
|
|
|
|
2,801
|
|
|
|
2,564
|
|
|
|
9
|
%
|
|
|
9
|
%
|
|
|
|
5,936
|
|
|
|
5,430
|
|
|
|
9
|
%
|
|
|
9
|
%
|
Western Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
695
|
|
|
|
547
|
|
|
|
27
|
%
|
|
|
23
|
%
|
|
|
|
1,524
|
|
|
|
1,263
|
|
|
|
21
|
%
|
|
|
17
|
%
|
Apparel
|
|
|
|
|
324
|
|
|
|
306
|
|
|
|
6
|
%
|
|
|
3
|
%
|
|
|
|
723
|
|
|
|
694
|
|
|
|
4
|
%
|
|
|
1
|
%
|
Equipment
|
|
|
|
|
55
|
|
|
|
55
|
|
|
|
0
|
%
|
|
|
-2
|
%
|
|
|
|
128
|
|
|
|
127
|
|
|
|
1
|
%
|
|
|
-3
|
%
|
Total
|
|
|
|
|
1,074
|
|
|
|
908
|
|
|
|
18
|
%
|
|
|
15
|
%
|
|
|
|
2,375
|
|
|
|
2,084
|
|
|
|
14
|
%
|
|
|
11
|
%
|
Central & Eastern Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
144
|
|
|
|
124
|
|
|
|
16
|
%
|
|
|
16
|
%
|
|
|
|
337
|
|
|
|
292
|
|
|
|
15
|
%
|
|
|
14
|
%
|
Apparel
|
|
|
|
|
135
|
|
|
|
114
|
|
|
|
18
|
%
|
|
|
21
|
%
|
|
|
|
274
|
|
|
|
243
|
|
|
|
13
|
%
|
|
|
13
|
%
|
Equipment
|
|
|
|
|
16
|
|
|
|
14
|
|
|
|
14
|
%
|
|
|
10
|
%
|
|
|
|
50
|
|
|
|
44
|
|
|
|
14
|
%
|
|
|
13
|
%
|
Total
|
|
|
|
|
295
|
|
|
|
252
|
|
|
|
17
|
%
|
|
|
18
|
%
|
|
|
|
661
|
|
|
|
579
|
|
|
|
14
|
%
|
|
|
14
|
%
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
358
|
|
|
|
324
|
|
|
|
10
|
%
|
|
|
8
|
%
|
|
|
|
699
|
|
|
|
681
|
|
|
|
3
|
%
|
|
|
0
|
%
|
Apparel
|
|
|
|
|
245
|
|
|
|
228
|
|
|
|
7
|
%
|
|
|
4
|
%
|
|
|
|
442
|
|
|
|
409
|
|
|
|
8
|
%
|
|
|
5
|
%
|
Equipment
|
|
|
|
|
26
|
|
|
|
30
|
|
|
|
-13
|
%
|
|
|
-15
|
%
|
|
|
|
62
|
|
|
|
69
|
|
|
|
-10
|
%
|
|
|
-13
|
%
|
Total
|
|
|
|
|
629
|
|
|
|
582
|
|
|
|
8
|
%
|
|
|
5
|
%
|
|
|
|
1,203
|
|
|
|
1,159
|
|
|
|
4
|
%
|
|
|
1
|
%
|
Japan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
101
|
|
|
|
109
|
|
|
|
-7
|
%
|
|
|
15
|
%
|
|
|
|
189
|
|
|
|
217
|
|
|
|
-13
|
%
|
|
|
8
|
%
|
Apparel
|
|
|
|
|
89
|
|
|
|
110
|
|
|
|
-19
|
%
|
|
|
1
|
%
|
|
|
|
142
|
|
|
|
177
|
|
|
|
-20
|
%
|
|
|
0
|
%
|
Equipment
|
|
|
|
|
20
|
|
|
|
21
|
|
|
|
-5
|
%
|
|
|
17
|
%
|
|
|
|
37
|
|
|
|
43
|
|
|
|
-14
|
%
|
|
|
9
|
%
|
Total
|
|
|
|
|
210
|
|
|
|
240
|
|
|
|
-13
|
%
|
|
|
9
|
%
|
|
|
|
368
|
|
|
|
437
|
|
|
|
-16
|
%
|
|
|
5
|
%
|
Emerging Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
686
|
|
|
|
728
|
|
|
|
-6
|
%
|
|
|
2
|
%
|
|
|
|
1,310
|
|
|
|
1,345
|
|
|
|
-3
|
%
|
|
|
3
|
%
|
Apparel
|
|
|
|
|
279
|
|
|
|
284
|
|
|
|
-2
|
%
|
|
|
5
|
%
|
|
|
|
505
|
|
|
|
507
|
|
|
|
0
|
%
|
|
|
5
|
%
|
Equipment
|
|
|
|
|
65
|
|
|
|
62
|
|
|
|
5
|
%
|
|
|
14
|
%
|
|
|
|
117
|
|
|
|
119
|
|
|
|
-2
|
%
|
|
|
4
|
%
|
Total
|
|
|
|
|
1,030
|
|
|
|
1,074
|
|
|
|
-4
|
%
|
|
|
3
|
%
|
|
|
|
1,932
|
|
|
|
1,971
|
|
|
|
-2
|
%
|
|
|
4
|
%
|
Global Brand Divisions3
|
|
|
|
|
31
|
|
|
|
28
|
|
|
|
11
|
%
|
|
|
15
|
%
|
|
|
|
63
|
|
|
|
55
|
|
|
|
15
|
%
|
|
|
13
|
%
|
Total NIKE Brand
|
|
|
|
|
6,070
|
|
|
|
5,648
|
|
|
|
7
|
%
|
|
|
9
|
%
|
|
|
|
12,538
|
|
|
|
11,715
|
|
|
|
7
|
%
|
|
|
8
|
%
|
Converse
|
|
|
|
|
360
|
|
|
|
316
|
|
|
|
14
|
%
|
|
|
11
|
%
|
|
|
|
854
|
|
|
|
734
|
|
|
|
16
|
%
|
|
|
14
|
%
|
Corporate4
|
|
|
|
|
1
|
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
10
|
|
|
|
(20
|
)
|
|
|
-
|
|
|
|
-
|
|
Total NIKE, Inc. Revenues From Continuing Operations
|
|
|
|
|
$ 6,431
|
|
|
|
$ 5,955
|
|
|
|
8
|
%
|
|
|
9
|
%
|
|
|
|
$ 13,402
|
|
|
|
$ 12,429
|
|
|
|
8
|
%
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NIKE Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
$ 3,611
|
|
|
|
$ 3,312
|
|
|
|
9
|
%
|
|
|
11
|
%
|
|
|
|
$ 7,590
|
|
|
|
$ 7,023
|
|
|
|
8
|
%
|
|
|
9
|
%
|
Apparel
|
|
|
|
|
2,058
|
|
|
|
1,945
|
|
|
|
6
|
%
|
|
|
7
|
%
|
|
|
|
4,081
|
|
|
|
3,857
|
|
|
|
6
|
%
|
|
|
7
|
%
|
Equipment
|
|
|
|
|
370
|
|
|
|
363
|
|
|
|
2
|
%
|
|
|
4
|
%
|
|
|
|
804
|
|
|
|
780
|
|
|
|
3
|
%
|
|
|
4
|
%
|
Global Brand Divisions3
|
|
|
|
|
31
|
|
|
|
28
|
|
|
|
11
|
%
|
|
|
15
|
%
|
|
|
|
63
|
|
|
|
55
|
|
|
|
15
|
%
|
|
|
13
|
%
|
1 Certain prior year amounts have been reclassified to
conform to fiscal year 2014 presentation. These changes had no
impact on previously reported results of operations or
shareholders' equity.
|
2 Fiscal 2014 results have been restated using fiscal
2013 exchange rates for the comparative period to enhance the
visibility of the underlying business trends excluding the impact
of foreign currency exchange rate fluctuations.
|
3 Global Brand Divisions primarily represent NIKE Brand
licensing businesses that are not part of a geographic operating
segment.
|
4 Corporate revenues primarily consist of intercompany
revenue eliminations and foreign currency revenue-related hedge
gains and losses generated by entities within the NIKE Brand
geographic operating segments and Converse through our centrally
managed foreign exchange risk management program.
|
|
NIKE, Inc.
|
EARNINGS BEFORE INTEREST AND TAXES1,2
|
For the period ended November 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
SIX MONTHS ENDED
|
|
|
%
|
(Dollars in millions)
|
|
|
|
11/30/2013
|
|
|
11/30/2012
|
|
|
Change
|
|
|
11/30/2013
|
|
|
11/30/2012
|
|
|
Change
|
North America
|
|
|
|
|
$ 649
|
|
|
|
|
$ 565
|
|
|
|
15
|
%
|
|
|
|
$ 1,462
|
|
|
|
|
$ 1,210
|
|
|
|
21
|
%
|
Western Europe
|
|
|
|
|
123
|
|
|
|
|
110
|
|
|
|
12
|
%
|
|
|
|
388
|
|
|
|
|
322
|
|
|
|
20
|
%
|
Central & Eastern Europe
|
|
|
|
|
48
|
|
|
|
|
37
|
|
|
|
30
|
%
|
|
|
|
129
|
|
|
|
|
91
|
|
|
|
42
|
%
|
Greater China
|
|
|
|
|
197
|
|
|
|
|
187
|
|
|
|
5
|
%
|
|
|
|
367
|
|
|
|
|
352
|
|
|
|
4
|
%
|
Japan
|
|
|
|
|
47
|
|
|
|
|
45
|
|
|
|
4
|
%
|
|
|
|
71
|
|
|
|
|
68
|
|
|
|
4
|
%
|
Emerging Markets
|
|
|
|
|
243
|
|
|
|
|
298
|
|
|
|
-18
|
%
|
|
|
|
453
|
|
|
|
|
519
|
|
|
|
-13
|
%
|
Global Brand Divisions3
|
|
|
|
|
(462
|
)
|
|
|
|
(410
|
)
|
|
|
-13
|
%
|
|
|
|
(928
|
)
|
|
|
|
(866
|
)
|
|
|
-7
|
%
|
TOTAL NIKE BRAND
|
|
|
|
|
845
|
|
|
|
|
832
|
|
|
|
2
|
%
|
|
|
|
1,942
|
|
|
|
|
1,696
|
|
|
|
15
|
%
|
Converse
|
|
|
|
|
100
|
|
|
|
|
91
|
|
|
|
10
|
%
|
|
|
|
269
|
|
|
|
|
215
|
|
|
|
25
|
%
|
Corporate4
|
|
|
|
|
(220
|
)
|
|
|
|
(212
|
)
|
|
|
-4
|
%
|
|
|
|
(438
|
)
|
|
|
|
(403
|
)
|
|
|
-9
|
%
|
TOTAL EARNINGS BEFORE INTEREST AND TAXES
|
|
|
|
|
$ 725
|
|
|
|
|
$ 711
|
|
|
|
2
|
%
|
|
|
|
$ 1,773
|
|
|
|
|
$ 1,508
|
|
|
|
18
|
%
|
1 The Company evaluates performance of individual
operating segments based on earnings before interest and taxes (also
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 year 2014 presentation. These changes had no
impact on previously reported results of operations or
shareholders' equity.
|
3 Global Brand Divisions primarily represent NIKE Brand
licensing businesses that are not part of a geographic operating
segment and selling general and administrative expenses that are
centrally managed for the NIKE Brand.
|
4 Corporate consists of unallocated general and
administrative expenses, which includes expenses associated with
centrally managed departments, depreciation and amortization
related to the Company’s corporate headquarters, unallocated
insurance and benefit programs, certain foreign currency gains and
losses, including certain hedge gains and losses, corporate
eliminations and other items.
|
|
NIKE, Inc.
|
NIKE BRAND REPORTED FUTURES GROWTH BY GEOGRAPHY1
|
As of November 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Futures
|
|
|
Excluding Currency
|
|
|
|
|
Orders
|
|
|
Changes 2
|
North America
|
|
|
|
11%
|
|
|
11%
|
Western Europe
|
|
|
|
26%
|
|
|
23%
|
Central & Eastern Europe
|
|
|
|
13%
|
|
|
14%
|
Greater China
|
|
|
|
4%
|
|
|
1%
|
Japan
|
|
|
|
-10%
|
|
|
1%
|
Emerging Markets
|
|
|
|
7%
|
|
|
15%
|
Total NIKE Brand Reported Futures
|
|
|
|
12%
|
|
|
13%
|
1 Futures orders by geography and in total for NIKE Brand
athletic footwear and apparel scheduled for delivery from December
2013 through April 2014, excluding NIKE Golf and Hurley.
|
The reported futures and advance 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 and because
the mix of orders can shift between advance/futures and at-once
orders and 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
advance/futures orders and actual revenues. Moreover, a significant
portion of our revenue is not derived from futures and advance
orders, including at-once and close-out sales of NIKE Brand footwear
and apparel, sales of NIKE Brand equipment, sales from certain of
our Direct to Consumer operations, and sales from Converse, NIKE
Golf and Hurley.
|
2 Reported futures have been restated using prior year
exchange rates to enhance the visibility of the underlying business
trends excluding the impact of foreign currency exchange rate
fluctuations.
|
Source: NIKE, Inc.