-
Revenues up 15 percent to $7.4 billion
-
Diluted earnings per share up 25 percent to $0.74
-
Worldwide futures orders up 7 percent, 11 percent growth excluding
currency changes
-
Inventories as of November 30, 2014 up 11 percent
BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal
2015 second quarter ended November 30, 2014. Strong consumer demand
drove revenue growth across the portfolio. Diluted earnings per share
grew faster than revenue, up 25 percent, primarily due to gross margin
expansion and a lower average share count, which more than offset higher
SG&A investments in NIKE, Inc. brands and business capabilities.
“Our strong second quarter results once again demonstrate NIKE is a
growth company,” said
Mark Parker
, President and CEO of NIKE, Inc. “The
power of our portfolio continues to unlock growth, as we keep a laser
focus on our biggest opportunities. The breadth and depth of that
portfolio has helped us consistently deliver strong results – quarter
after quarter, year after year.”*
Second Quarter Income Statement Review
-
Revenues for NIKE, Inc. increased 15 percent to
$7.4 billion, up 18 percent on a currency neutral basis.
-
Revenues for the NIKE Brand were $7.0 billion, up 17 percent on a
currency neutral basis, with growth in every product type,
geography and key category, except Golf.
-
Revenues for Converse were $434 million, up 24 percent on a
currency neutral basis, driven by continuing growth in existing
direct distribution markets as well as market conversions in
Europe and Asia.
-
Gross margin increased 120 basis points to 45.1 percent.
The increase was primarily attributable to a shift in mix to higher
margin products, continued growth in the higher-margin
Direct-to-Consumer (DTC) business and a modest benefit from foreign
exchange. These positive factors were partially offset by higher
product input costs.
-
Selling and administrative expense increased 17 percent
to $2.4 billion. Demand creation expense was $766 million, up 11
percent versus the prior year, driven by marketing support for new
product launches, digital brand marketing and consumer events.
Operating overhead expense increased 19 percent to $1.7 billion,
reflecting growth in the DTC business, as well as investments in
operational infrastructure and digital capabilities and engagement.
-
Other expense, net was $2 million comprised primarily of
foreign exchange losses, partially offset by other non-operating
items. For the quarter, the Company estimates the year-over-year
change in foreign currency related gains and losses included in other
expense, net combined with the impact of changes in currency exchange
rates on the translation of foreign currency-denominated profits,
decreased pretax income by approximately $39 million.
-
The effective tax rate was 25.4 percent, a 20 basis
point increase primarily due to adjustments to tax expense on
intercompany transactions and the benefit realized in the prior period
from the U.S. Research and Development tax credit. These factors were
partially offset by an increase in earnings from operations outside
the U.S., which are generally subject to a lower tax rate, and the
resolution of tax audits across multiple jurisdictions.
-
Net income increased 23 percent to $655 million, while diluted
earnings per share increased 25 percent to $0.74, reflecting
strong revenue growth, gross margin expansion and a 3 percent decline
in the weighted average diluted common shares outstanding.
November 30, 2014 Balance Sheet Review
-
Inventories for NIKE, Inc. were $4.2 billion, up 11
percent from November 30, 2013, driven by a 9 percent increase in NIKE
Brand wholesale inventories as well as higher inventories associated
with growth in DTC and Converse. NIKE Brand wholesale inventories were
higher due to a 14 percent increase in units, while changes in the
average product cost per unit, combined with the impact of changes in
foreign currency exchange rates, decreased growth by approximately 5
percentage points.
-
Cash and short-term investments were $4.7 billion, $474
million lower than last year as growth in net income and collateral
received from counterparties to foreign currency hedging instruments
was more than offset by share repurchases, higher dividends and
investments in working capital.
Share Repurchases
During the second quarter, NIKE, Inc. repurchased a total of 5.1 million
shares for approximately $425 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 67.6 million shares had
been repurchased under this program for $4.7 billion, an average cost of
approximately $68.96 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 2014
through April 2015 were 7 percent higher than orders reported for the
same period last year. Excluding currency changes, reported orders would
have increased 11 percent.*
Conference Call
NIKE management will host a conference call beginning at approximately
2:00 p.m. PT on December 18, 2014 to review second 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, December
25, 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.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 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 portion of the business does not report futures
orders.
(Additional Tables Follow)
|
NIKE, Inc.
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
SIX MONTHS ENDED
|
|
|
%
|
(Dollars in millions, except per share data)
|
|
|
|
11/30/2014
|
|
|
|
11/30/20131
|
|
|
Change
|
|
|
11/30/2014
|
|
|
|
11/30/20131
|
|
|
Change
|
Revenues
|
|
|
|
$
|
7,380
|
|
|
|
$
|
6,431
|
|
|
|
15%
|
|
|
$
|
15,362
|
|
|
|
$
|
13,402
|
|
|
|
15%
|
Cost of sales
|
|
|
|
|
4,053
|
|
|
|
|
3,605
|
|
|
|
12%
|
|
|
|
8,314
|
|
|
|
|
7,444
|
|
|
|
12%
|
Gross profit
|
|
|
|
|
3,327
|
|
|
|
|
2,826
|
|
|
|
18%
|
|
|
|
7,048
|
|
|
|
|
5,958
|
|
|
|
18%
|
Gross margin
|
|
|
|
|
45.1
|
%
|
|
|
|
43.9
|
%
|
|
|
|
|
|
|
45.9
|
%
|
|
|
|
44.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
|
|
|
766
|
|
|
|
|
691
|
|
|
|
11%
|
|
|
|
1,663
|
|
|
|
|
1,422
|
|
|
|
17%
|
Operating overhead expense
|
|
|
|
|
1,672
|
|
|
|
|
1,400
|
|
|
|
19%
|
|
|
|
3,255
|
|
|
|
|
2,727
|
|
|
|
19%
|
Total selling and administrative expense
|
|
|
|
|
2,438
|
|
|
|
|
2,091
|
|
|
|
17%
|
|
|
|
4,918
|
|
|
|
|
4,149
|
|
|
|
19%
|
% of revenue
|
|
|
|
|
33.0
|
%
|
|
|
|
32.5
|
%
|
|
|
|
|
|
|
32.0
|
%
|
|
|
|
31.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
|
|
9
|
|
|
|
|
8
|
|
|
|
-
|
|
|
|
18
|
|
|
|
|
16
|
|
|
|
-
|
Other expense (income), net
|
|
|
|
|
2
|
|
|
|
|
13
|
|
|
|
-
|
|
|
|
5
|
|
|
|
|
41
|
|
|
|
-
|
Income before income taxes
|
|
|
|
|
878
|
|
|
|
|
714
|
|
|
|
23%
|
|
|
|
2,107
|
|
|
|
|
1,752
|
|
|
|
20%
|
Income taxes
|
|
|
|
|
223
|
|
|
|
|
180
|
|
|
|
24%
|
|
|
|
490
|
|
|
|
|
439
|
|
|
|
12%
|
Effective tax rate
|
|
|
|
|
25.4
|
%
|
|
|
|
25.2
|
%
|
|
|
|
|
|
|
23.3
|
%
|
|
|
|
25.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
|
$
|
655
|
|
|
|
$
|
534
|
|
|
|
23%
|
|
|
$
|
1,617
|
|
|
|
$
|
1,313
|
|
|
|
23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.76
|
|
|
|
$
|
0.60
|
|
|
|
27%
|
|
|
$
|
1.87
|
|
|
|
$
|
1.48
|
|
|
|
26%
|
Diluted
|
|
|
|
$
|
0.74
|
|
|
|
$
|
0.59
|
|
|
|
25%
|
|
|
$
|
1.83
|
|
|
|
$
|
1.44
|
|
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
863.1
|
|
|
|
|
888.0
|
|
|
|
|
|
|
|
864.0
|
|
|
|
|
888.7
|
|
|
|
|
Diluted
|
|
|
|
|
884.8
|
|
|
|
|
910.6
|
|
|
|
|
|
|
|
885.8
|
|
|
|
|
910.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
|
|
$
|
0.28
|
|
|
|
$
|
0.24
|
|
|
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Prior year amounts have been revised to correctly
expense internally developed patent and trademark costs as incurred.
|
|
|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 30,
|
|
|
November 30,
|
|
|
|
(Dollars in millions)
|
|
|
|
2014
|
|
|
20131
|
|
|
% Change
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
|
|
$
|
2,273
|
|
|
$
|
2,086
|
|
|
|
9%
|
Short-term investments
|
|
|
|
|
2,440
|
|
|
|
3,101
|
|
|
|
-21%
|
Accounts receivable, net
|
|
|
|
|
3,457
|
|
|
|
3,208
|
|
|
|
8%
|
Inventories
|
|
|
|
|
4,150
|
|
|
|
3,742
|
|
|
|
11%
|
Deferred income taxes
|
|
|
|
|
334
|
|
|
|
315
|
|
|
|
6%
|
Prepaid expenses and other current assets
|
|
|
|
|
1,379
|
|
|
|
1,146
|
|
|
|
20%
|
Total current assets
|
|
|
|
|
14,033
|
|
|
|
13,598
|
|
|
|
3%
|
Property, plant and equipment
|
|
|
|
|
6,450
|
|
|
|
5,869
|
|
|
|
10%
|
Less accumulated depreciation
|
|
|
|
|
3,523
|
|
|
|
3,224
|
|
|
|
9%
|
Property, plant and equipment, net
|
|
|
|
|
2,927
|
|
|
|
2,645
|
|
|
|
11%
|
Identifiable intangible assets, net
|
|
|
|
|
281
|
|
|
|
287
|
|
|
|
-2%
|
Goodwill
|
|
|
|
|
131
|
|
|
|
131
|
|
|
|
0%
|
Deferred income taxes and other assets
|
|
|
|
|
1,795
|
|
|
|
1,110
|
|
|
|
62%
|
TOTAL ASSETS
|
|
|
|
$
|
19,167
|
|
|
$
|
17,771
|
|
|
|
8%
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
$
|
110
|
|
|
$
|
7
|
|
|
|
1471%
|
Notes payable
|
|
|
|
|
93
|
|
|
|
150
|
|
|
|
-38%
|
Accounts payable
|
|
|
|
|
2,074
|
|
|
|
1,642
|
|
|
|
26%
|
Accrued liabilities
|
|
|
|
|
2,622
|
|
|
|
2,052
|
|
|
|
28%
|
Income taxes payable
|
|
|
|
|
38
|
|
|
|
30
|
|
|
|
27%
|
Total current liabilities
|
|
|
|
|
4,937
|
|
|
|
3,881
|
|
|
|
27%
|
Long-term debt
|
|
|
|
|
1,084
|
|
|
|
1,201
|
|
|
|
-10%
|
Deferred income taxes and other liabilities
|
|
|
|
|
1,446
|
|
|
|
1,424
|
|
|
|
2%
|
Redeemable preferred stock
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Shareholders' equity
|
|
|
|
|
11,700
|
|
|
|
11,265
|
|
|
|
4%
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
$
|
19,167
|
|
|
$
|
17,771
|
|
|
|
8%
|
1 Prior year amounts have been revised to correct
immaterial misstatements.
|
|
|
NIKE, Inc.
|
DIVISIONAL REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
Currency
|
|
|
SIX MONTHS ENDED
|
|
|
%
|
|
|
Currency
|
(Dollars in millions)
|
|
|
|
11/30/2014
|
|
|
11/30/2013
|
|
|
Change
|
|
|
Changes1
|
|
|
11/30/2014
|
|
|
11/30/2013
|
|
|
Change
|
|
|
Changes1
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
$
|
1,925
|
|
|
|
$
|
1,627
|
|
|
18
|
%
|
|
|
18
|
%
|
|
|
$
|
4,108
|
|
|
|
$
|
3,531
|
|
|
16
|
%
|
|
|
16
|
%
|
Apparel
|
|
|
|
|
1,131
|
|
|
|
|
986
|
|
|
15
|
%
|
|
|
15
|
%
|
|
|
|
2,236
|
|
|
|
|
1,995
|
|
|
12
|
%
|
|
|
12
|
%
|
Equipment
|
|
|
|
|
185
|
|
|
|
|
188
|
|
|
-2
|
%
|
|
|
-1
|
%
|
|
|
|
410
|
|
|
|
|
410
|
|
|
0
|
%
|
|
|
0
|
%
|
Total
|
|
|
|
|
3,241
|
|
|
|
|
2,801
|
|
|
16
|
%
|
|
|
16
|
%
|
|
|
|
6,754
|
|
|
|
|
5,936
|
|
|
14
|
%
|
|
|
14
|
%
|
Western Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
863
|
|
|
|
|
695
|
|
|
24
|
%
|
|
|
26
|
%
|
|
|
|
1,990
|
|
|
|
|
1,524
|
|
|
31
|
%
|
|
|
28
|
%
|
Apparel
|
|
|
|
|
384
|
|
|
|
|
324
|
|
|
19
|
%
|
|
|
20
|
%
|
|
|
|
882
|
|
|
|
|
723
|
|
|
22
|
%
|
|
|
19
|
%
|
Equipment
|
|
|
|
|
65
|
|
|
|
|
55
|
|
|
18
|
%
|
|
|
18
|
%
|
|
|
|
154
|
|
|
|
|
128
|
|
|
20
|
%
|
|
|
17
|
%
|
Total
|
|
|
|
|
1,312
|
|
|
|
|
1,074
|
|
|
22
|
%
|
|
|
24
|
%
|
|
|
|
3,026
|
|
|
|
|
2,375
|
|
|
27
|
%
|
|
|
25
|
%
|
Central & Eastern Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
180
|
|
|
|
|
144
|
|
|
25
|
%
|
|
|
32
|
%
|
|
|
|
403
|
|
|
|
|
337
|
|
|
20
|
%
|
|
|
24
|
%
|
Apparel
|
|
|
|
|
149
|
|
|
|
|
135
|
|
|
10
|
%
|
|
|
19
|
%
|
|
|
|
283
|
|
|
|
|
274
|
|
|
3
|
%
|
|
|
9
|
%
|
Equipment
|
|
|
|
|
17
|
|
|
|
|
16
|
|
|
6
|
%
|
|
|
18
|
%
|
|
|
|
52
|
|
|
|
|
50
|
|
|
4
|
%
|
|
|
10
|
%
|
Total
|
|
|
|
|
346
|
|
|
|
|
295
|
|
|
17
|
%
|
|
|
25
|
%
|
|
|
|
738
|
|
|
|
|
661
|
|
|
12
|
%
|
|
|
16
|
%
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
463
|
|
|
|
|
358
|
|
|
29
|
%
|
|
|
30
|
%
|
|
|
|
903
|
|
|
|
|
699
|
|
|
29
|
%
|
|
|
30
|
%
|
Apparel
|
|
|
|
|
266
|
|
|
|
|
245
|
|
|
9
|
%
|
|
|
9
|
%
|
|
|
|
468
|
|
|
|
|
442
|
|
|
6
|
%
|
|
|
7
|
%
|
Equipment
|
|
|
|
|
29
|
|
|
|
|
26
|
|
|
12
|
%
|
|
|
12
|
%
|
|
|
|
66
|
|
|
|
|
62
|
|
|
6
|
%
|
|
|
7
|
%
|
Total
|
|
|
|
|
758
|
|
|
|
|
629
|
|
|
21
|
%
|
|
|
21
|
%
|
|
|
|
1,437
|
|
|
|
|
1,203
|
|
|
19
|
%
|
|
|
20
|
%
|
Japan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
108
|
|
|
|
|
101
|
|
|
7
|
%
|
|
|
16
|
%
|
|
|
|
208
|
|
|
|
|
189
|
|
|
10
|
%
|
|
|
16
|
%
|
Apparel
|
|
|
|
|
75
|
|
|
|
|
89
|
|
|
-16
|
%
|
|
|
-8
|
%
|
|
|
|
121
|
|
|
|
|
142
|
|
|
-15
|
%
|
|
|
-9
|
%
|
Equipment
|
|
|
|
|
16
|
|
|
|
|
20
|
|
|
-20
|
%
|
|
|
-13
|
%
|
|
|
|
30
|
|
|
|
|
37
|
|
|
-19
|
%
|
|
|
-15
|
%
|
Total
|
|
|
|
|
199
|
|
|
|
|
210
|
|
|
-5
|
%
|
|
|
3
|
%
|
|
|
|
359
|
|
|
|
|
368
|
|
|
-2
|
%
|
|
|
3
|
%
|
Emerging Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
727
|
|
|
|
|
686
|
|
|
6
|
%
|
|
|
15
|
%
|
|
|
|
1,355
|
|
|
|
|
1,310
|
|
|
3
|
%
|
|
|
11
|
%
|
Apparel
|
|
|
|
|
280
|
|
|
|
|
279
|
|
|
0
|
%
|
|
|
8
|
%
|
|
|
|
532
|
|
|
|
|
505
|
|
|
5
|
%
|
|
|
13
|
%
|
Equipment
|
|
|
|
|
68
|
|
|
|
|
65
|
|
|
5
|
%
|
|
|
8
|
%
|
|
|
|
122
|
|
|
|
|
117
|
|
|
4
|
%
|
|
|
11
|
%
|
Total
|
|
|
|
|
1,075
|
|
|
|
|
1,030
|
|
|
4
|
%
|
|
|
13
|
%
|
|
|
|
2,009
|
|
|
|
|
1,932
|
|
|
4
|
%
|
|
|
11
|
%
|
Global Brand Divisions2
|
|
|
|
|
28
|
|
|
|
|
31
|
|
|
-10
|
%
|
|
|
-7
|
%
|
|
|
|
57
|
|
|
|
|
63
|
|
|
-10
|
%
|
|
|
-12
|
%
|
Total NIKE Brand
|
|
|
|
|
6,959
|
|
|
|
|
6,070
|
|
|
15
|
%
|
|
|
17
|
%
|
|
|
|
14,380
|
|
|
|
|
12,538
|
|
|
15
|
%
|
|
|
16
|
%
|
Converse
|
|
|
|
|
434
|
|
|
|
|
360
|
|
|
21
|
%
|
|
|
24
|
%
|
|
|
|
1,009
|
|
|
|
|
854
|
|
|
18
|
%
|
|
|
19
|
%
|
Corporate3
|
|
|
|
|
(13
|
)
|
|
|
|
1
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(27
|
)
|
|
|
|
10
|
|
|
-
|
|
|
|
-
|
|
Total NIKE, Inc. Revenues
|
|
|
|
$
|
7,380
|
|
|
|
$
|
6,431
|
|
|
15
|
%
|
|
|
18
|
%
|
|
|
$
|
15,362
|
|
|
|
$
|
13,402
|
|
|
15
|
%
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NIKE Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
$
|
4,266
|
|
|
|
$
|
3,611
|
|
|
18
|
%
|
|
|
21
|
%
|
|
|
$
|
8,967
|
|
|
|
$
|
7,590
|
|
|
18
|
%
|
|
|
19
|
%
|
Apparel
|
|
|
|
|
2,285
|
|
|
|
|
2,058
|
|
|
11
|
%
|
|
|
13
|
%
|
|
|
|
4,522
|
|
|
|
|
4,081
|
|
|
11
|
%
|
|
|
12
|
%
|
Equipment
|
|
|
|
|
380
|
|
|
|
|
370
|
|
|
3
|
%
|
|
|
5
|
%
|
|
|
|
834
|
|
|
|
|
804
|
|
|
4
|
%
|
|
|
5
|
%
|
Global Brand Divisions2
|
|
|
|
|
28
|
|
|
|
|
31
|
|
|
-10
|
%
|
|
|
-7
|
%
|
|
|
|
57
|
|
|
|
|
63
|
|
|
-10
|
%
|
|
|
-12
|
%
|
1 Fiscal 2015 results have been restated using fiscal
2014 exchange rates for the comparative period to enhance the
visibility of the underlying business trends excluding the impact
of foreign currency exchange rate fluctuations.
|
2 Global Brand Divisions primarily represent NIKE Brand
licensing businesses that are not part of a geographic operating
segment.
|
3 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.
|
EARNINGS BEFORE INTEREST AND TAXES1,2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
SIX MONTHS ENDED
|
|
|
%
|
(Dollars in millions)
|
|
|
|
11/30/2014
|
|
|
|
11/30/20133
|
|
|
Change
|
|
|
11/30/2014
|
|
|
11/30/20133
|
|
|
Change
|
North America
|
|
|
|
$
|
785
|
|
|
|
$
|
647
|
|
|
|
21
|
%
|
|
|
$
|
1,755
|
|
|
|
$
|
1,460
|
|
|
|
20
|
%
|
Western Europe
|
|
|
|
|
261
|
|
|
|
|
123
|
|
|
|
112
|
%
|
|
|
|
665
|
|
|
|
|
388
|
|
|
|
71
|
%
|
Central & Eastern Europe
|
|
|
|
|
57
|
|
|
|
|
48
|
|
|
|
19
|
%
|
|
|
|
125
|
|
|
|
|
129
|
|
|
|
-3
|
%
|
Greater China
|
|
|
|
|
258
|
|
|
|
|
197
|
|
|
|
31
|
%
|
|
|
|
476
|
|
|
|
|
367
|
|
|
|
30
|
%
|
Japan
|
|
|
|
|
29
|
|
|
|
|
47
|
|
|
|
-38
|
%
|
|
|
|
40
|
|
|
|
|
71
|
|
|
|
-44
|
%
|
Emerging Markets
|
|
|
|
|
236
|
|
|
|
|
243
|
|
|
|
-3
|
%
|
|
|
|
392
|
|
|
|
|
453
|
|
|
|
-13
|
%
|
Global Brand Divisions4
|
|
|
|
|
(552
|
)
|
|
|
|
(450
|
)
|
|
|
-23
|
%
|
|
|
|
(1,085
|
)
|
|
|
|
(916
|
)
|
|
|
-18
|
%
|
TOTAL NIKE BRAND
|
|
|
|
|
1,074
|
|
|
|
|
855
|
|
|
|
26
|
%
|
|
|
|
2,368
|
|
|
|
|
1,952
|
|
|
|
21
|
%
|
Converse
|
|
|
|
|
88
|
|
|
|
|
100
|
|
|
|
-12
|
%
|
|
|
|
274
|
|
|
|
|
269
|
|
|
|
2
|
%
|
Corporate5
|
|
|
|
|
(275
|
)
|
|
|
|
(233
|
)
|
|
|
-18
|
%
|
|
|
|
(517
|
)
|
|
|
|
(453
|
)
|
|
|
-14
|
%
|
TOTAL EARNINGS BEFORE INTEREST AND TAXES
|
|
|
|
$
|
887
|
|
|
|
$
|
722
|
|
|
|
23
|
%
|
|
|
$
|
2,125
|
|
|
|
$
|
1,768
|
|
|
|
20
|
%
|
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 2015 presentation. These changes had no
impact on previously reported results of operations or shareholders'
equity.
|
3 Prior year amounts have been revised to correctly
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 November 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Futures
|
|
|
Excluding Currency
|
|
|
|
|
Orders
|
|
|
Changes2
|
North America
|
|
|
|
13%
|
|
|
13%
|
Western Europe
|
|
|
|
4%
|
|
|
13%
|
Central & Eastern Europe
|
|
|
|
6%
|
|
|
18%
|
Greater China
|
|
|
|
12%
|
|
|
13%
|
Japan
|
|
|
|
-4%
|
|
|
3%
|
Emerging Markets
|
|
|
|
-3%
|
|
|
1%
|
Total NIKE Brand Reported Futures
|
|
|
|
7%
|
|
|
11%
|
1 Futures orders by geography and in total for NIKE Brand
footwear and apparel scheduled for delivery from December 2014
through April 2015, excluding NIKE Golf and Hurley.
|
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 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, NIKE Brand equipment, sales from our DTC 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.