-
Fourth quarter revenues from continuing operations up 11 percent to
$7.4 billion
-
Fourth quarter diluted earnings per share from continuing operations
up 3 percent to $0.78
-
Fiscal 2014 revenues from continuing operations up 10 percent to $27.8
billion
-
Fiscal 2014 diluted earnings per share from continuing operations up
11 percent to $2.97
-
Worldwide futures orders up 11 percent; 12 percent growth excluding
currency changes
-
Inventories as of May 31, 2014 up 13 percent
BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported fiscal 2014 financial results for
its fourth quarter and full year ended May 31, 2014. Despite the
negative impact of changes in foreign exchange rates, diluted earnings
per share for the quarter increased 3 percent as revenue growth, gross
margin expansion and a lower average share count more than offset
increased SG&A investments and a higher tax rate.
Fiscal 2014 diluted earnings per share rose 11 percent to $2.97,
reflecting 10 percent revenue growth, gross margin expansion, a lower
tax rate and a lower average share count, which more than offset the
impacts of higher SG&A investments and foreign exchange headwinds.
“These results demonstrate the energy and excitement NIKE brings to the
market,” said President and CEO
Mark Parker
. “Our ability to
relentlessly innovate for consumers drove our growth in FY14, and will
continue to fuel it for years to come. And as we grow, we remain focused
on managing all areas of our business to drive sustainable, profitable
growth for our shareholders.”*
Fourth Quarter Continuing Operations Income Statement Review
-
Revenues for NIKE, Inc. rose 11 percent to $7.4
billion, up 13 percent on a currency neutral basis.
-
Revenues for the NIKE Brand were $7.0 billion, up 13 percent on a
currency neutral basis powered by growth in every key category and
geography except Japan, where revenues were in line with the
fourth quarter last year.
-
Revenues for Converse were $410 million, up 15 percent on a
currency neutral basis, mainly driven by strong performance in our
largest direct distribution markets: the United States, China and
the United Kingdom.
-
Gross margin expanded 170 basis points to 45.6 percent.
The increase was primarily attributable to higher average selling
prices and continued growth in the higher margin Direct to Consumer
(DTC) business, partially offset by higher product input costs and
unfavorable foreign exchange rates.
-
Selling and administrative expense increased 21 percent
to $2.4 billion. Demand creation expense was $876 million, up 36
percent, driven by marketing support for the World Cup and key product
initiatives. Operating overhead expense increased 13 percent to $1.6
billion due to higher costs for the expanding DTC business, as well as
investments in infrastructure and digital innovation.
-
Other expense, net was $17 million, comprised primarily
of foreign 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
$30 million.
-
The effective tax rate was 23.5 percent, compared to
22.9 percent for the fourth quarter last year. The effective tax rate
for the prior period was lower due to a reduction in tax reserves
related to foreign operations.
-
Net income increased 1 percent to $698 million while diluted
earnings per share increased 3 percent to $0.78, reflecting a
decrease in the weighted average diluted common shares outstanding.
Fiscal 2014 Continuing Operations Income Statement Review
-
Revenues for NIKE, Inc. rose 10 percent to $27.8
billion, up 11 percent on a currency neutral basis.
-
Revenues for the NIKE Brand were $26.1 billion, up 11 percent
excluding the impact of changes in foreign currency.
-
NIKE Brand wholesale revenues increased 8 percent on a currency
neutral basis while DTC revenues grew to $5.3 billion, up 22
percent excluding the impact of changes in foreign currency,
driven by 10 percent growth in comparable store sales, new store
expansion and a 42 percent increase in e-commerce sales. As of May
31, 2014, the NIKE Brand had 768 DTC stores in operation as
compared to 678 a year ago.
-
On a currency neutral basis, NIKE Brand revenue growth was driven
by growth in every geography, key category and across the Brand’s
Men’s, Women’s and Young Athletes’ (Kids’) businesses.
-
Revenues for Converse were $1.7 billion, up 15 percent on a
currency neutral basis, mainly driven by strong performance in our
largest direct distribution markets: the United States, China and
the United Kingdom.
-
Gross margin expanded 120 basis points to 44.8 percent.
The increase was primarily due to higher average selling prices and
continued growth in the higher margin Direct to Consumer business,
partially offset by higher product input costs and unfavorable foreign
exchange rates.
-
Selling and administrative expense grew 12 percent to
$8.8 billion. Demand creation expense was $3.0 billion, up 10 percent,
due to an increase in sports marketing expense, as well as marketing
support for the World Cup and key product launches. Operating overhead
expense increased 14 percent to $5.7 billion due to higher costs for
the expanding DTC business, investments in digital innovation and
operational infrastructure.
-
Other expense, net was $103 million for the fiscal year,
mainly comprised of foreign exchange losses. For the year, 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 $139 million.
-
The effective tax rate was 24.0 percent, lower than the
effective tax rate of 24.7 percent last year primarily due to an
increase in earnings from low tax jurisdictions.
-
Net income increased 10 percent to $2.7 billion while diluted
earnings per share increased 11 percent to $2.97, reflecting a
decline in the weighted average diluted common shares outstanding.
May 31, 2014 Balance Sheet Review for Continuing Operations
-
Inventories for NIKE, Inc. were $3.9 billion, up 13
percent from May 31, 2013. NIKE Brand wholesale unit inventories
increased 12 percent. Changes in the average product cost per unit,
combined with the impact of changes in foreign currency exchange
rates, drove approximately 1 percentage point of net NIKE Brand
wholesale inventory growth.
-
Cash and short-term investments were $5.1 billion, $823
million lower than last year as growth in net income was more than
offset by share repurchases and higher dividends, as well as capital
investments in the business.
Share Repurchases
During the fourth quarter, NIKE, Inc. repurchased a total of 12.3
million shares for approximately $912 million as part of the four-year,
$8 billion program approved by the Board of Directors in September 2012.
As of the end of fiscal 2014, a total of 51.9 million shares had been
repurchased under this program for approximately $3.4 billion, at an
average cost of $65.83 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 June through
November 2014 totaled $13.3 billion, 11 percent higher than orders
reported for the same period last year, and 12 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 June 26, 2014, to review fiscal fourth quarter and full
year 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, July 3,
2014.
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,
changes in the timing of shipments, discounts and returns, which may
vary significantly from quarter to quarter, and because a significant
portion of the business does not report futures orders.
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED STATEMENTS OF INCOME
|
For the period ended May 31, 2014
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
%
|
TWELVE MONTHS ENDED
|
%
|
(Dollars in millions, except per share data)
|
|
5/31/2014
|
|
|
5/31/20131
|
|
Change
|
|
5/31/2014
|
|
|
5/31/20131
|
|
Change
|
Income from continuing operations:
|
|
|
|
|
|
|
Revenues
|
|
$ 7,425
|
|
|
$ 6,697
|
|
11
|
%
|
|
$ 27,799
|
|
|
$ 25,313
|
|
10
|
%
|
Cost of sales
|
|
4,040
|
|
|
3,757
|
|
8
|
%
|
|
15,353
|
|
|
14,279
|
|
8
|
%
|
Gross profit
|
|
3,385
|
|
|
2,940
|
|
15
|
%
|
|
12,446
|
|
|
11,034
|
|
13
|
%
|
Gross margin
|
|
45.6
|
%
|
|
43.9
|
%
|
|
|
44.8
|
%
|
|
43.6
|
%
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
876
|
|
|
642
|
|
36
|
%
|
|
3,031
|
|
|
2,745
|
|
10
|
%
|
Operating overhead expense
|
|
1,572
|
|
|
1,387
|
|
13
|
%
|
|
5,735
|
|
|
5,051
|
|
14
|
%
|
Total selling and administrative expense
|
|
2,448
|
|
|
2,029
|
|
21
|
%
|
|
8,766
|
|
|
7,796
|
|
12
|
%
|
% of revenue
|
|
33.0
|
%
|
|
30.3
|
%
|
|
|
31.5
|
%
|
|
30.8
|
%
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
8
|
|
|
3
|
|
-
|
|
|
33
|
|
|
(3
|
)
|
-
|
|
Other expense (income), net
|
|
17
|
|
|
13
|
|
-
|
|
|
103
|
|
|
(15
|
)
|
-
|
|
Income before income taxes
|
|
912
|
|
|
895
|
|
2
|
%
|
|
3,544
|
|
|
3,256
|
|
9
|
%
|
Income taxes
|
|
214
|
|
|
205
|
|
4
|
%
|
|
851
|
|
|
805
|
|
6
|
%
|
Effective tax rate
|
|
23.5
|
%
|
|
22.9
|
%
|
|
|
24.0
|
%
|
|
24.7
|
%
|
|
|
|
|
|
|
|
|
NET INCOME FROM CONTINUING OPERATIONS
|
|
698
|
|
|
690
|
|
1
|
%
|
|
2,693
|
|
|
2,451
|
|
10
|
%
|
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS
|
|
-
|
|
|
(28
|
)
|
-
|
|
|
-
|
|
|
21
|
|
-
|
|
NET INCOME |
|
$ 698
|
|
|
$ 662
|
|
5
|
% |
|
$ 2,693
|
|
|
$ 2,472
|
|
9
|
%
|
|
|
|
|
|
|
|
Earnings per share from continuing operations:
|
|
|
|
|
|
|
Basic earnings per common share
|
|
$ 0.80
|
|
|
$ 0.77
|
|
4
|
%
|
|
$ 3.05
|
|
|
$ 2.74
|
|
11
|
%
|
Diluted earnings per common share
|
|
$ 0.78
|
|
|
$ 0.76
|
|
3
|
%
|
|
$ 2.97
|
|
|
$ 2.68
|
|
11
|
%
|
|
|
|
|
|
|
|
Earnings per share from discontinued operations:
|
|
|
|
|
|
|
Basic earnings per common share
|
|
$ -
|
|
|
$ (0.03
|
)
|
-
|
|
|
$ -
|
|
|
$ 0.02
|
|
-
|
|
Diluted earnings per common share
|
|
$ -
|
|
|
$ (0.03
|
)
|
-
|
|
|
$ -
|
|
|
$ 0.02
|
|
-
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
873.7
|
|
|
892.6
|
|
|
|
883.4
|
|
|
897.3
|
|
|
Diluted
|
|
895.2
|
|
|
913.4
|
|
|
|
905.8
|
|
|
916.4
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$ 0.24
|
|
|
$ 0.21
|
|
|
|
$ 0.93
|
|
|
$ 0.81
|
|
|
1 Prior year amounts have been revised to properly
expense internally developed patent and trademark costs as incurred.
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
As of May 31, 2014
|
|
|
|
|
|
May 31,
|
May 31,
|
|
(Dollars in millions)
|
2014
|
20131
|
% Change
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and equivalents
|
|
$ 2,220
|
|
$ 3,337
|
-33%
|
Short-term investments
|
|
2,922
|
|
2,628
|
11%
|
Accounts receivable, net
|
|
3,434
|
|
3,117
|
10%
|
Inventories
|
|
3,947
|
|
3,484
|
13%
|
Deferred income taxes
|
|
355
|
|
308
|
15%
|
Prepaid expenses and other current assets
|
|
818
|
|
756
|
8%
|
Assets of discontinued operations
|
|
-
|
|
-
|
-
|
Total current assets
|
|
13,696
|
|
13,630
|
0%
|
Property, plant and equipment
|
|
6,220
|
|
5,500
|
13%
|
Less accumulated depreciation
|
|
3,386
|
|
3,048
|
11%
|
Property, plant and equipment, net
|
|
2,834
|
|
2,452
|
16%
|
Identifiable intangible assets, net
|
|
282
|
|
289
|
-2%
|
Goodwill
|
|
131
|
|
131
|
0%
|
Deferred income taxes and other assets
|
|
1,651
|
|
1,043
|
58%
|
TOTAL ASSETS
|
|
$ 18,594
|
|
$ 17,545
|
6%
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Current portion of long-term debt
|
|
$ 7
|
|
$ 57
|
-88%
|
Notes payable
|
|
167
|
|
98
|
70%
|
Accounts payable
|
|
1,930
|
|
1,669
|
16%
|
Accrued liabilities
|
|
2,491
|
|
2,036
|
22%
|
Income taxes payable
|
|
432
|
|
84
|
414%
|
Liabilities of discontinued operations
|
|
-
|
|
18
|
-
|
Total current liabilities
|
|
5,027
|
|
3,962
|
27%
|
Long-term debt
|
|
1,199
|
|
1,210
|
-1%
|
Deferred income taxes and other liabilities
|
|
1,544
|
|
1,292
|
20%
|
Redeemable preferred stock
|
|
-
|
|
-
|
-
|
Shareholders' equity
|
|
10,824
|
|
11,081
|
-2%
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$ 18,594
|
|
$ 17,545
|
6%
|
1 Prior year amounts have been revised to recognize
certain inventories held at third parties and to properly expense
internally developed patent and trademark costs as incurred.
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
DIVISIONAL REVENUES1
|
For the period ended May 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
% Change
|
|
|
|
|
Excluding
|
|
|
|
Excluding
|
|
THREE MONTHS ENDED
|
%
|
Currency
|
TWELVE MONTHS ENDED
|
%
|
Currency
|
(Dollars in millions)
|
|
5/31/2014
|
|
5/31/2013
|
Change
|
Changes 2
|
|
5/31/2014
|
|
5/31/2013
|
Change
|
Changes 2
|
North America
|
|
|
|
|
|
|
|
|
Footwear
|
|
$ 2,036
|
|
$ 1,818
|
12%
|
12%
|
|
$ 7,495
|
|
$ 6,751
|
11%
|
11%
|
Apparel
|
|
1,017
|
|
934
|
9%
|
9%
|
|
3,937
|
|
3,591
|
10%
|
10%
|
Equipment
|
|
241
|
|
239
|
1%
|
1%
|
|
867
|
|
816
|
6%
|
6%
|
Total
|
|
3,294
|
|
2,991
|
10%
|
10%
|
|
12,299
|
|
11,158
|
10%
|
10%
|
Western Europe
|
|
|
|
|
|
|
|
|
Footwear
|
|
884
|
|
699
|
26%
|
20%
|
|
3,299
|
|
2,657
|
24%
|
20%
|
Apparel
|
|
366
|
|
290
|
26%
|
19%
|
|
1,427
|
|
1,289
|
11%
|
7%
|
Equipment
|
|
62
|
|
63
|
-2%
|
-4%
|
|
253
|
|
247
|
2%
|
-1%
|
Total
|
|
1,312
|
|
1,052
|
25%
|
18%
|
|
4,979
|
|
4,193
|
19%
|
14%
|
Central & Eastern Europe
|
|
|
|
|
|
|
|
|
Footwear
|
|
219
|
|
212
|
3%
|
8%
|
|
763
|
|
672
|
14%
|
15%
|
Apparel
|
|
129
|
|
110
|
17%
|
25%
|
|
532
|
|
468
|
14%
|
17%
|
Equipment
|
|
22
|
|
25
|
-12%
|
-7%
|
|
92
|
|
89
|
3%
|
7%
|
Total
|
|
370
|
|
347
|
7%
|
12%
|
|
1,387
|
|
1,229
|
13%
|
15%
|
Greater China
|
|
|
|
|
|
|
|
|
Footwear
|
|
434
|
|
404
|
7%
|
6%
|
|
1,600
|
|
1,495
|
7%
|
5%
|
Apparel
|
|
235
|
|
236
|
0%
|
-2%
|
|
876
|
|
844
|
4%
|
1%
|
Equipment
|
|
33
|
|
38
|
-13%
|
-12%
|
|
126
|
|
139
|
-9%
|
-11%
|
Total
|
|
702
|
|
678
|
4%
|
2%
|
|
2,602
|
|
2,478
|
5%
|
3%
|
Japan
|
|
|
|
|
|
|
|
|
Footwear
|
|
128
|
|
124
|
3%
|
12%
|
|
409
|
|
439
|
-7%
|
11%
|
Apparel
|
|
75
|
|
90
|
-17%
|
-11%
|
|
276
|
|
337
|
-18%
|
-2%
|
Equipment
|
|
23
|
|
30
|
-23%
|
-17%
|
|
86
|
|
100
|
-14%
|
2%
|
Total
|
|
226
|
|
244
|
-7%
|
0%
|
|
771
|
|
876
|
-12%
|
5%
|
Emerging Markets
|
|
|
|
|
|
|
|
|
Footwear
|
|
701
|
|
673
|
4%
|
19%
|
|
2,642
|
|
2,621
|
1%
|
10%
|
Apparel
|
|
313
|
|
249
|
26%
|
44%
|
|
1,061
|
|
962
|
10%
|
21%
|
Equipment
|
|
66
|
|
72
|
-8%
|
8%
|
|
246
|
|
249
|
-1%
|
9%
|
Total
|
|
1,080
|
|
994
|
9%
|
25%
|
|
3,949
|
|
3,832
|
3%
|
13%
|
Global Brand Divisions3
|
|
36
|
|
31
|
16%
|
10%
|
|
125
|
|
115
|
9%
|
6%
|
Total NIKE Brand
|
|
7,020
|
|
6,337
|
11%
|
13%
|
|
26,112
|
|
23,881
|
9%
|
11%
|
Converse
|
|
410
|
|
354
|
16%
|
15%
|
|
1,684
|
|
1,449
|
16%
|
15%
|
Corporate4
|
|
(5)
|
|
6
|
-
|
-
|
|
3
|
|
(17)
|
-
|
-
|
Total NIKE, Inc. Revenues From Continuing Operations
|
|
$ 7,425
|
|
$ 6,697
|
11%
|
13%
|
|
$ 27,799
|
|
$ 25,313
|
10%
|
11%
|
|
|
|
|
|
|
|
|
|
Total NIKE Brand
|
|
|
|
|
|
|
|
|
Footwear
|
|
$ 4,402
|
|
$ 3,930
|
12%
|
14%
|
|
$ 16,208
|
|
$ 14,635
|
11%
|
12%
|
Apparel
|
|
2,135
|
|
1,909
|
12%
|
14%
|
|
8,109
|
|
7,491
|
8%
|
10%
|
Equipment
|
|
447
|
|
467
|
-4%
|
-1%
|
|
1,670
|
|
1,640
|
2%
|
4%
|
Global Brand Divisions3
|
|
36
|
|
31
|
16%
|
10%
|
|
125
|
|
115
|
9%
|
6%
|
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 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.
|
SUPPLEMENTAL NIKE BRAND REVENUE DETAILS1
|
For the period ended May 31, 2014
|
|
|
|
|
|
% Change
|
|
|
|
|
|
Excluding
|
|
|
YEAR ENDED
|
%
|
Currency
|
(Dollars in millions)
|
|
5/31/2014
|
5/31/2013
|
Change
|
Changes 2
|
NIKE Brand Revenues by:
|
|
|
|
|
|
Sales to Wholesale Customers
|
|
|
$ 20,683
|
|
$ 19,401
|
7%
|
8%
|
Sales Direct to Consumers
|
|
|
5,304
|
|
4,365
|
22%
|
22%
|
Global Brand Divisions
|
|
|
125
|
|
115
|
9%
|
6%
|
Total NIKE Brand Revenues
|
|
|
$ 26,112
|
|
$ 23,881
|
9%
|
11%
|
|
|
|
|
|
|
NIKE Brand Revenues on a Wholesale Equivalent Basis:3
|
|
|
|
|
|
Sales to Wholesale Customers
|
|
|
$ 20,683
|
$
|
19,401
|
7%
|
8%
|
Sales from our Wholesale Operations to Direct to Consumer Operations
|
|
|
3,107
|
|
2,499
|
24%
|
25%
|
Total NIKE Brand Wholesale Equivalent Revenues
|
|
|
$ 23,790
|
$
|
21,900
|
9%
|
10%
|
|
|
|
|
|
|
NIKE Brand Wholesale Equivalent Revenues by:3
|
|
|
|
|
|
Men's
|
|
|
$ 14,001
|
$
|
13,073
|
7%
|
9%
|
Women’s
|
|
|
4,971
|
|
4,494
|
11%
|
12%
|
Young Athletes'
|
|
|
3,737
|
|
3,251
|
15%
|
16%
|
Others4
|
|
|
1,081
|
|
1,082
|
0%
|
1%
|
Total NIKE Brand Wholesale Equivalent Revenues
|
|
|
$ 23,790
|
$
|
21,900
|
9%
|
10%
|
|
|
|
|
|
|
NIKE Brand Wholesale Equivalent Revenues by:3
|
|
|
|
|
|
Running
|
|
|
$ 4,623
|
|
$ 4,274
|
8%
|
10%
|
Basketball
|
|
|
3,119
|
|
2,629
|
19%
|
19%
|
Football (Soccer)
|
|
|
2,270
|
|
1,930
|
18%
|
21%
|
Men’s Training
|
|
|
2,479
|
|
2,391
|
4%
|
5%
|
Women’s Training
|
|
|
1,149
|
|
1,067
|
8%
|
10%
|
Action Sports
|
|
|
738
|
|
683
|
8%
|
9%
|
Sportswear
|
|
|
5,877
|
|
5,569
|
6%
|
7%
|
Golf
|
|
|
789
|
|
792
|
0%
|
1%
|
Others5
|
|
|
2,746
|
|
2,565
|
7%
|
8%
|
Total NIKE Brand Wholesale Equivalent Revenues
|
|
|
$ 23,790
|
|
$ 21,900
|
9%
|
10%
|
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 by excluding the
impact of translation arising from foreign currency exchange rate
fluctuations.
|
|
3 References to NIKE Brand wholesale equivalent
revenues are intended to provide context as to the total size of
our NIKE Brand market footprint if we had no Direct to Consumer
operations. NIKE Brand wholesale equivalent revenues consist of 1)
sales to external wholesale customers, and 2) internal sales from
our wholesale operations to our Direct to Consumer operations
which are charged at prices that are comparable to prices charged
to external wholesale customers.
|
|
4 Others include all unisex products, equipment, and
other products not allocated to Men's, Women's, and Young
Athletes', as well as certain adjustments that are not allocated
to products designated by Gender-Age.
|
|
5 Others include all other categories and certain
adjustments that are not allocated at the category level.
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
EARNINGS BEFORE INTEREST AND TAXES1,2
|
For the period ended May 31, 2014
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
%
|
TWELVE MONTHS ENDED
|
%
|
(Dollars in millions)
|
|
5/31/2014
|
|
|
5/31/20133
|
Change
|
|
5/31/2014
|
|
|
5/31/20133
|
Change
|
North America
|
|
$ 887
|
|
|
$ 778
|
|
14
|
%
|
|
$ 3,075
|
|
|
$ 2,641
|
|
16
|
%
|
Western Europe
|
|
192
|
|
|
142
|
|
35
|
%
|
|
855
|
|
|
643
|
|
33
|
%
|
Central & Eastern Europe
|
|
71
|
|
|
79
|
|
-10
|
%
|
|
279
|
|
|
234
|
|
19
|
%
|
Greater China
|
|
215
|
|
|
243
|
|
-12
|
%
|
|
816
|
|
|
813
|
|
0
|
%
|
Japan
|
|
39
|
|
|
47
|
|
-17
|
%
|
|
131
|
|
|
139
|
|
-6
|
%
|
Emerging Markets
|
|
273
|
|
|
253
|
|
8
|
%
|
|
955
|
|
|
988
|
|
-3
|
%
|
Global Brand Divisions4
|
|
(560
|
)
|
|
(466
|
)
|
-20
|
%
|
|
(2,021
|
)
|
|
(1,746
|
)
|
-16
|
%
|
TOTAL NIKE BRAND
|
|
1,117
|
|
|
1,076
|
|
4
|
%
|
|
4,090
|
|
|
3,712
|
|
10
|
%
|
Converse
|
|
94
|
|
|
89
|
|
6
|
%
|
|
496
|
|
|
425
|
|
17
|
%
|
Corporate5
|
|
(291
|
)
|
|
(267
|
)
|
-9
|
%
|
|
(1,009
|
)
|
|
(884
|
)
|
-14
|
%
|
TOTAL EARNINGS BEFORE INTEREST AND TAXES
|
|
$ 920
|
|
|
$ 898
|
|
2
|
%
|
|
$ 3,577
|
|
|
$ 3,253
|
|
10
|
%
|
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 Prior year amounts have been revised to properly
expense internally developed patent and trademark costs as
incurred.
|
|
4 Global Brand Divisions primarily represent demand
creation, operating overhead, information technology, 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.
|
|
5 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 May 31, 2014
|
|
|
|
|
Reported Futures
|
Excluding Currency
|
|
Orders
|
Changes 2
|
North America
|
11%
|
11%
|
Western Europe
|
25%
|
22%
|
Central & Eastern Europe
|
10%
|
14%
|
Greater China
|
6%
|
6%
|
Japan
|
-6%
|
0%
|
Emerging Markets
|
2%
|
9%
|
Total NIKE Brand Reported Futures
|
11%
|
12%
|
1 Futures orders by geography and in total for NIKE
Brand athletic footwear and apparel scheduled for delivery from
June 2014 through November 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.