-
Revenues up 7 percent to $7.5 billion; 13 percent growth excluding
currency changes
-
Diluted earnings per share up 19 percent to $0.89
-
Worldwide futures orders up 2 percent; 11 percent growth excluding
currency changes
-
Inventories as of February 28, 2015 up 12 percent
BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal
2015 third quarter ended February 28, 2015. Diluted earnings per share
for the quarter were up 19 percent due to higher revenues as a result of
continued strong demand for NIKE, Inc. brands and gross margin
expansion, partially offset by higher SG&A investments and a higher
effective tax rate.
“Our strong third quarter results show that our growth strategies are
working, even under challenging macroeconomic conditions,” said
Mark
Parker
, President and CEO, NIKE, Inc. “NIKE has the ability to deliver
consistent shareholder value due to the strength of our brand, our
relentless commitment to innovation and our powerful portfolio that
allows us to invest in the opportunities with the highest potential for
growth as well as manage risk.”*
Third Quarter Income Statement Review
-
Revenues for NIKE, Inc. rose 7 percent to $7.5
billion, up 13 percent on a currency neutral basis.
-
Revenues for the NIKE Brand were $6.9 billion, up 11 percent on a
currency neutral basis driven by growth in every geography and in
most key categories.
-
Revenues for Converse were $538 million, up 33 percent on a
currency neutral basis, mainly driven by continued growth and
timing of shipments in North America, the transition to direct
distribution in AGS (Austria, Germany, Switzerland) and growth in
the Direct to Consumer (DTC) business.
-
Gross margin expanded 140 basis points to 45.9 percent.
Gross margin benefitted from a continued shift in mix to higher margin
products, partially offset by higher product input and warehousing
costs.
-
Selling and administrative expense increased 10 percent
to $2.4 billion. Demand creation expense was $731 million, flat to the
prior year as increased investments in digital brand marketing and
sports marketing were offset by lower advertising expense due to
product launch timing. Operating overhead expense increased 15 percent
to $1.6 billion, reflecting growth in the DTC business and targeted
investments in infrastructure and consumer-focused digital
capabilities.
-
Other income, net was $5 million, comprised primarily of
net foreign 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
exchange rates on the translation of foreign currency-denominated
profits, decreased pretax income by approximately $20 million.
-
The effective tax rate was 24.4 percent, compared to
22.5 percent for the same period last year, primarily due to the
impact of tax expense on intercompany transactions, partially offset
by the retroactive reinstatement of the U.S. research and development
tax credit.
-
Net income increased 16 percent to $791 million, driven
by strong revenue growth and gross margin expansion, while diluted
earnings per share increased 19 percent to $0.89, reflecting a
2 percent decline in the weighted average diluted common shares
outstanding.
February 28, 2015 Balance Sheet Review
-
Inventories for NIKE, Inc. were $4.2 billion, up 12
percent from February 28, 2014, driven by a 12 percent increase in
NIKE Brand wholesale inventories as well as higher inventories
associated with growth in DTC. NIKE Brand wholesale inventories were
higher due to a 17 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 $5.4 billion, $332
million higher than last year as growth in net income and collateral
received from counterparties as a result of hedging activities more
than offset share repurchases, higher dividends and investments in
working capital.
Share Repurchases
During the third quarter, NIKE, Inc. repurchased a total of 6.5 million
shares for approximately $612 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 third quarter, a total of 74.1 million shares had been
repurchased under this program for approximately $5.3 billion, an
average cost of $71.13 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 March 2015
through July 2015 were 2 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 March 19, 2015, to review 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 26,
2015.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
|
NINE MONTHS ENDED
|
|
%
|
(Dollars in millions, except per share data)
|
|
|
2/28/2015
|
|
|
2/28/20141
|
|
Change
|
|
|
|
2/28/2015
|
|
|
2/28/20141
|
|
Change
|
Revenues
|
|
$
|
7,460
|
|
$
|
6,972
|
|
7%
|
|
|
$
|
22,822
|
|
$
|
20,374
|
|
12%
|
Cost of sales
|
|
|
4,034
|
|
|
3,869
|
|
4%
|
|
|
|
12,348
|
|
|
11,313
|
|
9%
|
Gross profit
|
|
|
3,426
|
|
|
3,103
|
|
10%
|
|
|
|
10,474
|
|
|
9,061
|
|
16%
|
Gross margin
|
|
|
45.9%
|
|
|
44.5%
|
|
|
|
|
|
45.9%
|
|
|
44.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
|
731
|
|
|
733
|
|
0%
|
|
|
|
2,394
|
|
|
2,155
|
|
11%
|
Operating overhead expense
|
|
|
1,648
|
|
|
1,436
|
|
15%
|
|
|
|
4,903
|
|
|
4,163
|
|
18%
|
Total selling and administrative expense
|
|
|
2,379
|
|
|
2,169
|
|
10%
|
|
|
|
7,297
|
|
|
6,318
|
|
15%
|
% of revenue
|
|
|
31.9%
|
|
|
31.1%
|
|
|
|
|
|
32.0%
|
|
|
31.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
6
|
|
|
9
|
|
-
|
|
|
|
24
|
|
|
25
|
|
-
|
Other (income) expense, net
|
|
|
(5)
|
|
|
45
|
|
-
|
|
|
|
-
|
|
|
86
|
|
-
|
Income before income taxes
|
|
|
1,046
|
|
|
880
|
|
19%
|
|
|
|
3,153
|
|
|
2,632
|
|
20%
|
Income taxes
|
|
|
255
|
|
|
198
|
|
29%
|
|
|
|
745
|
|
|
637
|
|
17%
|
Effective tax rate
|
|
|
24.4%
|
|
|
22.5%
|
|
|
|
|
|
23.6%
|
|
|
24.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
791
|
|
$
|
682
|
|
16%
|
|
|
$
|
2,408
|
|
$
|
1,995
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.92
|
|
$
|
0.77
|
|
19%
|
|
|
$
|
2.79
|
|
$
|
2.25
|
|
24%
|
Diluted
|
|
$
|
0.89
|
|
$
|
0.75
|
|
19%
|
|
|
$
|
2.72
|
|
$
|
2.19
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
861.4
|
|
|
882.3
|
|
|
|
|
|
863.2
|
|
|
886.6
|
|
|
Diluted
|
|
|
883.8
|
|
|
904.8
|
|
|
|
|
|
885.5
|
|
|
909.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.28
|
|
$
|
0.24
|
|
|
|
|
$
|
0.80
|
|
$
|
0.69
|
|
|
1 Prior year amounts have been revised to correctly
expense internally developed patent and trademark costs as incurred.
|
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
February 28,
|
|
February 28,
|
|
|
(Dollars in millions)
|
|
2015
|
|
20141
|
|
% Change
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
3,015
|
|
$
|
1,864
|
|
62%
|
Short-term investments
|
|
|
2,346
|
|
|
3,165
|
|
-26%
|
Accounts receivable, net
|
|
|
3,294
|
|
|
3,355
|
|
-2%
|
Inventories
|
|
|
4,246
|
|
|
3,785
|
|
12%
|
Deferred income taxes
|
|
|
328
|
|
|
319
|
|
3%
|
Prepaid expenses and other current assets
|
|
|
1,978
|
|
|
821
|
|
141%
|
Total current assets
|
|
|
15,207
|
|
|
13,309
|
|
14%
|
Property, plant and equipment
|
|
|
6,401
|
|
|
6,073
|
|
5%
|
Less accumulated depreciation
|
|
|
3,539
|
|
|
3,337
|
|
6%
|
Property, plant and equipment, net
|
|
|
2,862
|
|
|
2,736
|
|
5%
|
Identifiable intangible assets, net
|
|
|
281
|
|
|
285
|
|
-1%
|
Goodwill
|
|
|
131
|
|
|
131
|
|
0%
|
Deferred income taxes and other assets
|
|
|
2,060
|
|
|
1,202
|
|
71%
|
TOTAL ASSETS
|
|
$
|
20,541
|
|
$
|
17,663
|
|
16%
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
108
|
|
$
|
7
|
|
1443%
|
Notes payable
|
|
|
61
|
|
|
119
|
|
-49%
|
Accounts payable
|
|
|
1,821
|
|
|
1,480
|
|
23%
|
Accrued liabilities
|
|
|
3,563
|
|
|
2,263
|
|
57%
|
Income taxes payable
|
|
|
33
|
|
|
27
|
|
22%
|
Total current liabilities
|
|
|
5,586
|
|
|
3,896
|
|
43%
|
Long-term debt
|
|
|
1,082
|
|
|
1,201
|
|
-10%
|
Deferred income taxes and other liabilities
|
|
|
1,505
|
|
|
1,515
|
|
-1%
|
Redeemable preferred stock
|
|
|
-
|
|
|
-
|
|
-
|
Shareholders' equity
|
|
|
12,368
|
|
|
11,051
|
|
12%
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
20,541
|
|
$
|
17,663
|
|
16%
|
1 Prior year amounts have been revised to correct
immaterial misstatements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
DIVISIONAL REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
Currency
|
|
|
NINE MONTHS ENDED
|
|
%
|
|
Currency
|
(Dollars in millions)
|
|
2/28/2015
|
|
2/28/2014
|
|
Change
|
|
Changes1
|
|
|
2/28/2015
|
|
2/28/2014
|
|
Change
|
|
Changes1
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
2,081
|
|
$
|
1,928
|
|
8%
|
|
8%
|
|
|
$
|
6,189
|
|
$
|
5,459
|
|
13%
|
|
14%
|
Apparel
|
|
|
987
|
|
|
925
|
|
7%
|
|
7%
|
|
|
|
3,223
|
|
|
2,920
|
|
10%
|
|
11%
|
Equipment
|
|
|
186
|
|
|
216
|
|
-14%
|
|
-14%
|
|
|
|
596
|
|
|
626
|
|
-5%
|
|
-5%
|
Total
|
|
|
3,254
|
|
|
3,069
|
|
6%
|
|
6%
|
|
|
|
10,008
|
|
|
9,005
|
|
11%
|
|
11%
|
Western Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
986
|
|
|
891
|
|
11%
|
|
22%
|
|
|
|
2,976
|
|
|
2,415
|
|
23%
|
|
26%
|
Apparel
|
|
|
363
|
|
|
338
|
|
7%
|
|
18%
|
|
|
|
1,245
|
|
|
1,061
|
|
17%
|
|
19%
|
Equipment
|
|
|
67
|
|
|
63
|
|
6%
|
|
16%
|
|
|
|
221
|
|
|
191
|
|
16%
|
|
17%
|
Total
|
|
|
1,416
|
|
|
1,292
|
|
10%
|
|
21%
|
|
|
|
4,442
|
|
|
3,667
|
|
21%
|
|
23%
|
Central & Eastern Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
187
|
|
|
207
|
|
-10%
|
|
8%
|
|
|
|
590
|
|
|
544
|
|
8%
|
|
18%
|
Apparel
|
|
|
111
|
|
|
129
|
|
-14%
|
|
4%
|
|
|
|
394
|
|
|
403
|
|
-2%
|
|
7%
|
Equipment
|
|
|
21
|
|
|
20
|
|
5%
|
|
19%
|
|
|
|
73
|
|
|
70
|
|
4%
|
|
13%
|
Total
|
|
|
319
|
|
|
356
|
|
-10%
|
|
7%
|
|
|
|
1,057
|
|
|
1,017
|
|
4%
|
|
13%
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
562
|
|
|
467
|
|
20%
|
|
22%
|
|
|
|
1,465
|
|
|
1,166
|
|
26%
|
|
27%
|
Apparel
|
|
|
212
|
|
|
199
|
|
7%
|
|
8%
|
|
|
|
680
|
|
|
641
|
|
6%
|
|
7%
|
Equipment
|
|
|
27
|
|
|
31
|
|
-13%
|
|
-4%
|
|
|
|
93
|
|
|
93
|
|
0%
|
|
3%
|
Total
|
|
|
801
|
|
|
697
|
|
15%
|
|
17%
|
|
|
|
2,238
|
|
|
1,900
|
|
18%
|
|
19%
|
Japan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
99
|
|
|
92
|
|
8%
|
|
23%
|
|
|
|
307
|
|
|
281
|
|
9%
|
|
18%
|
Apparel
|
|
|
46
|
|
|
59
|
|
-22%
|
|
-12%
|
|
|
|
167
|
|
|
201
|
|
-17%
|
|
-10%
|
Equipment
|
|
|
21
|
|
|
26
|
|
-19%
|
|
-2%
|
|
|
|
51
|
|
|
63
|
|
-19%
|
|
-10%
|
Total
|
|
|
166
|
|
|
177
|
|
-6%
|
|
8%
|
|
|
|
525
|
|
|
545
|
|
-4%
|
|
5%
|
Emerging Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
655
|
|
|
631
|
|
4%
|
|
14%
|
|
|
|
2,010
|
|
|
1,941
|
|
4%
|
|
12%
|
Apparel
|
|
|
240
|
|
|
243
|
|
-1%
|
|
10%
|
|
|
|
772
|
|
|
748
|
|
3%
|
|
12%
|
Equipment
|
|
|
60
|
|
|
63
|
|
-5%
|
|
7%
|
|
|
|
182
|
|
|
180
|
|
1%
|
|
10%
|
Total
|
|
|
955
|
|
|
937
|
|
2%
|
|
12%
|
|
|
|
2,964
|
|
|
2,869
|
|
3%
|
|
12%
|
Global Brand Divisions2
|
|
|
28
|
|
|
26
|
|
8%
|
|
13%
|
|
|
|
85
|
|
|
89
|
|
-4%
|
|
-5%
|
Total NIKE Brand
|
|
|
6,939
|
|
|
6,554
|
|
6%
|
|
11%
|
|
|
|
21,319
|
|
|
19,092
|
|
12%
|
|
14%
|
Converse
|
|
|
538
|
|
|
420
|
|
28%
|
|
33%
|
|
|
|
1,547
|
|
|
1,274
|
|
21%
|
|
24%
|
Corporate3
|
|
|
(17)
|
|
|
(2)
|
|
-
|
|
-
|
|
|
|
(44)
|
|
|
8
|
|
-
|
|
-
|
Total NIKE, Inc. Revenues
|
|
$
|
7,460
|
|
$
|
6,972
|
|
7%
|
|
13%
|
|
|
$
|
22,822
|
|
$
|
20,374
|
|
12%
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NIKE Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
4,570
|
|
$
|
4,216
|
|
8%
|
|
14%
|
|
|
$
|
13,537
|
|
$
|
11,806
|
|
15%
|
|
17%
|
Apparel
|
|
|
1,959
|
|
|
1,893
|
|
3%
|
|
9%
|
|
|
|
6,481
|
|
|
5,974
|
|
8%
|
|
11%
|
Equipment
|
|
|
382
|
|
|
419
|
|
-9%
|
|
-3%
|
|
|
|
1,216
|
|
|
1,223
|
|
-1%
|
|
2%
|
Global Brand Divisions2
|
|
|
28
|
|
|
26
|
|
8%
|
|
13%
|
|
|
|
85
|
|
|
89
|
|
-4%
|
|
-5%
|
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 translation arising from foreign currency exchange rate
fluctuations.
|
2 Global Brand Divisions revenues are primarily
attributable to 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
|
|
%
|
|
|
NINE MONTHS ENDED
|
|
%
|
(Dollars in millions)
|
|
2/28/2015
|
|
2/28/20143
|
|
Change
|
|
|
2/28/2015
|
|
2/28/20143
|
|
Change
|
North America
|
|
$
|
830
|
|
$
|
729
|
|
14%
|
|
|
$
|
2,585
|
|
$
|
2,189
|
|
18%
|
Western Europe
|
|
|
335
|
|
|
275
|
|
22%
|
|
|
|
1,000
|
|
|
663
|
|
51%
|
Central & Eastern Europe
|
|
|
51
|
|
|
79
|
|
-35%
|
|
|
|
176
|
|
|
208
|
|
-15%
|
Greater China
|
|
|
251
|
|
|
234
|
|
7%
|
|
|
|
727
|
|
|
601
|
|
21%
|
Japan
|
|
|
22
|
|
|
21
|
|
5%
|
|
|
|
62
|
|
|
92
|
|
-33%
|
Emerging Markets
|
|
|
234
|
|
|
228
|
|
3%
|
|
|
|
626
|
|
|
681
|
|
-8%
|
Global Brand Divisions4
|
|
|
(552)
|
|
|
(528)
|
|
-5%
|
|
|
|
(1,637)
|
|
|
(1,444)
|
|
-13%
|
TOTAL NIKE BRAND
|
|
|
1,171
|
|
|
1,038
|
|
13%
|
|
|
|
3,539
|
|
|
2,990
|
|
18%
|
Converse
|
|
|
163
|
|
|
133
|
|
23%
|
|
|
|
437
|
|
|
402
|
|
9%
|
Corporate5
|
|
|
(282)
|
|
|
(282)
|
|
0%
|
|
|
|
(799)
|
|
|
(735)
|
|
-9%
|
TOTAL EARNINGS BEFORE INTEREST AND TAXES
|
|
$
|
1,052
|
|
$
|
889
|
|
18%
|
|
|
$
|
3,177
|
|
$
|
2,657
|
|
20%
|
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 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 February 28, 2015
|
|
|
|
|
|
|
|
|
|
|
Reported Futures
|
|
|
Excluding Currency
|
|
|
|
Orders
|
|
|
Changes2
|
North America
|
|
|
15%
|
|
|
15%
|
Western Europe
|
|
|
-14%
|
|
|
7%
|
Central & Eastern Europe
|
|
|
-1%
|
|
|
21%
|
Greater China
|
|
|
22%
|
|
|
23%
|
Japan
|
|
|
-4%
|
|
|
13%
|
Emerging Markets
|
|
|
-17%
|
|
|
-6%
|
Total NIKE Brand Reported Futures
|
|
|
2%
|
|
|
11%
|
1 Futures orders for NIKE Brand footwear and apparel
scheduled for delivery from March 2015 through July 2015. 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 at-once and closeout sales of NIKE Brand
footwear and apparel, sales of 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.