-
Revenues up 4 percent to $7.7 billion; 12 percent growth excluding
currency changes
-
Diluted earnings per share up 22 percent to $0.90
-
Worldwide futures orders up 15 percent; 20 percent growth excluding
currency changes
-
Inventories as of November 30, 2015 up 11 percent
BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal
2016 second quarter ended November 30, 2015. Strong consumer demand
drove revenue growth across the NIKE Brand portfolio. Diluted earnings
per share grew faster than revenue, up 22 percent, primarily due to
gross margin expansion, a lower effective tax rate and a lower average
share count, which more than offset higher SG&A investments in NIKE,
Inc. brands and business capabilities.
“Our strong Q2 growth and profitability show that NIKE continues to
drive real momentum through the Category Offense – by going deep with
consumers by sport and serving them completely,” said Mark Parker,
President and CEO, NIKE, Inc. “And our powerful global portfolio of
businesses, combined with strong financial discipline, continue to drive
significant shareholder value. We see tremendous opportunity ahead as we
enter an Olympic and European Championships year with a full pipeline of
inspiring innovation for athletes everywhere.”*
Second Quarter Income Statement Review
-
Revenues for NIKE, Inc. increased 4 percent to
$7.7 billion, up 12 percent on a currency neutral basis.
-
Revenues for the NIKE Brand were $7.3 billion, up 13 percent on a
currency neutral basis, driven by double-digit growth in every
geography and most key categories.
-
Revenues for Converse were $398 million, down 5 percent on a
currency neutral basis, as strong growth in North America was more
than offset by a decline in Europe.
-
Gross margin increased 50 basis points to 45.6 percent,
primarily due to higher average selling prices, partially offset by
higher product input costs and unfavorable changes in foreign exchange
rates.
-
Selling and administrative expense increased 5 percent
to $2.6 billion. Demand creation expense was $769 million, flat versus
the prior year. Operating overhead expense increased 7 percent to $1.8
billion, reflecting continued growth in the Direct To Consumer (DTC)
business, as well as investments in operational infrastructure and
consumer-focused digital capabilities.
-
Other income, net was $34 million comprised primarily of
net foreign currency exchange gains, and a favorable settlement of a
legal judgment related to a bankruptcy case in Western Europe. 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 $109 million.
-
The effective tax rate was 19.1 percent, compared to
25.4 percent for the same period last year, primarily due to
adjustments in the prior year to tax expense on intercompany
transactions and an increase in earnings from operations outside the
U.S. in the current period, which are generally subject to a lower tax
rate. These factors were partially offset by the resolution of tax
audits across multiple jurisdictions in the prior year period.
-
Net income increased 20 percent to $785 million, while diluted
earnings per share increased 22 percent to $0.90, reflecting
revenue growth, gross margin expansion, a lower tax rate and a one
percent decline in the weighted average diluted common shares
outstanding.
November 30, 2015 Balance Sheet Review
-
Inventories for NIKE, Inc. were $4.6 billion, up 11
percent from November 30, 2014, driven primarily by an 8 percent
increase in NIKE Brand wholesale unit inventories. Increases in
average product cost per unit, as well as higher inventories
associated with growth in DTC, were largely offset by changes in the
value of inventories due to foreign currency exchange rates.
-
Cash and short-term investments were $6.1 billion, $1.4
billion higher than last year mainly as a result of proceeds from the
issuance of debt in the second quarter, collateral received from
counterparties to foreign currency hedging instruments and growth in
net income, which more than offset share repurchases, investments in
working capital and higher dividends.
Share Repurchases
During the second quarter, NIKE, Inc. repurchased a total of 5.6 million
shares for approximately $652 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 92 million shares had been
repurchased under this program for $7.2 billion, an average cost of
approximately $78.19 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 2015
through April 2016 were 15 percent higher than orders reported for the
same period last year. Excluding currency changes, futures orders would
have increased 20 percent.*
Stock Split
On November 19, 2015, the Company announced a two-for-one split of both
NIKE Class A and Class B Common Stock. The Company expects its common
stock to begin trading at the split-adjusted price on December 24, 2015.
As the common stock is not yet trading on a post-split basis, all share
and per-share amounts in this earnings release and the accompanying
schedules are presented on a pre-split basis.
Conference Call
NIKE, Inc. management will host a conference call beginning at
approximately 2:00 p.m. PT on December 22, 2015, to review fiscal 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
29, 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. 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 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
|
|
%
|
|
|
SIX MONTHS ENDED
|
|
%
|
(Dollars in millions, except per share data)
|
|
|
11/30/2015
|
|
|
11/30/2014
|
|
Change
|
|
|
|
11/30/2015
|
|
|
11/30/2014
|
|
Change
|
Revenues
|
|
$
|
7,686
|
|
$
|
7,380
|
|
4%
|
|
|
$
|
16,100
|
|
$
|
15,362
|
|
5%
|
Cost of sales
|
|
|
4,185
|
|
|
4,053
|
|
3%
|
|
|
|
8,604
|
|
|
8,314
|
|
3%
|
Gross profit
|
|
|
3,501
|
|
|
3,327
|
|
5%
|
|
|
|
7,496
|
|
|
7,048
|
|
6%
|
Gross margin
|
|
|
45.6%
|
|
|
45.1%
|
|
|
|
|
|
46.6%
|
|
|
45.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
|
769
|
|
|
766
|
|
0%
|
|
|
|
1,601
|
|
|
1,663
|
|
-4%
|
Operating overhead expense
|
|
|
1,791
|
|
|
1,672
|
|
7%
|
|
|
|
3,536
|
|
|
3,255
|
|
9%
|
Total selling and administrative expense
|
|
|
2,560
|
|
|
2,438
|
|
5%
|
|
|
|
5,137
|
|
|
4,918
|
|
4%
|
% of revenue
|
|
|
33.3%
|
|
|
33.0%
|
|
|
|
|
|
31.9%
|
|
|
32.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
5
|
|
|
9
|
|
-
|
|
|
|
9
|
|
|
18
|
|
-
|
Other (income) expense, net
|
|
|
(34)
|
|
|
2
|
|
-
|
|
|
|
(65)
|
|
|
5
|
|
-
|
Income before income taxes
|
|
|
970
|
|
|
878
|
|
10%
|
|
|
|
2,415
|
|
|
2,107
|
|
15%
|
Income taxes
|
|
|
185
|
|
|
223
|
|
-17%
|
|
|
|
451
|
|
|
490
|
|
-8%
|
Effective tax rate
|
|
|
19.1%
|
|
|
25.4%
|
|
|
|
|
|
18.7%
|
|
|
23.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
785
|
|
$
|
655
|
|
20%
|
|
|
$
|
1,964
|
|
$
|
1,617
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.92
|
|
$
|
0.76
|
|
21%
|
|
|
$
|
2.30
|
|
$
|
1.87
|
|
23%
|
Diluted
|
|
$
|
0.90
|
|
$
|
0.74
|
|
22%
|
|
|
$
|
2.24
|
|
$
|
1.83
|
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
853.3
|
|
|
863.1
|
|
|
|
|
|
853.9
|
|
|
864.0
|
|
|
Diluted
|
|
|
875.7
|
|
|
884.8
|
|
|
|
|
|
876.7
|
|
|
885.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.32
|
|
$
|
0.28
|
|
|
|
|
$
|
0.60
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
November 30,
|
|
|
November 30,
|
|
|
|
(Dollars in millions)
|
|
2015
|
|
|
2014
|
|
|
% Change
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
3,851
|
|
|
$
|
2,273
|
|
|
69%
|
Short-term investments
|
|
|
2,265
|
|
|
|
2,440
|
|
|
-7%
|
Accounts receivable, net
|
|
|
3,437
|
|
|
|
3,457
|
|
|
-1%
|
Inventories
|
|
|
4,600
|
|
|
|
4,150
|
|
|
11%
|
Deferred income taxes
|
|
|
405
|
|
|
|
334
|
|
|
21%
|
Prepaid expenses and other current assets
|
|
|
2,197
|
|
|
|
1,379
|
|
|
59%
|
Total current assets
|
|
|
16,755
|
|
|
|
14,033
|
|
|
19%
|
Property, plant and equipment, net
|
|
|
3,235
|
|
|
|
2,927
|
|
|
11%
|
Identifiable intangible assets, net
|
|
|
281
|
|
|
|
281
|
|
|
0%
|
Goodwill
|
|
|
131
|
|
|
|
131
|
|
|
0%
|
Deferred income taxes and other assets
|
|
|
2,181
|
|
|
|
1,795
|
|
|
22%
|
TOTAL ASSETS
|
|
$
|
22,583
|
|
|
$
|
19,167
|
|
|
18%
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
5
|
|
|
$
|
110
|
|
|
-95%
|
Notes payable
|
|
|
99
|
|
|
|
93
|
|
|
6%
|
Accounts payable
|
|
|
1,915
|
|
|
|
2,074
|
|
|
-8%
|
Accrued liabilities
|
|
|
3,451
|
|
|
|
2,622
|
|
|
32%
|
Income taxes payable
|
|
|
41
|
|
|
|
38
|
|
|
8%
|
Total current liabilities
|
|
|
5,511
|
|
|
|
4,937
|
|
|
12%
|
Long-term debt
|
|
|
2,067
|
|
|
|
1,084
|
|
|
91%
|
Deferred income taxes and other liabilities
|
|
|
1,600
|
|
|
|
1,446
|
|
|
11%
|
Redeemable preferred stock
|
|
|
—
|
|
|
|
—
|
|
|
—
|
Shareholders' equity
|
|
|
13,405
|
|
|
|
11,700
|
|
|
15%
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
22,583
|
|
|
$
|
19,167
|
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
DIVISIONAL REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
Currency
|
|
|
SIX MONTHS ENDED
|
|
%
|
|
Currency
|
(Dollars in millions)
|
|
|
11/30/2015
|
|
|
11/30/20141
|
|
Change
|
|
Changes2
|
|
|
|
11/30/2015
|
|
|
11/30/20141
|
|
Change
|
|
Changes2
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
2,162
|
|
$
|
1,925
|
|
12%
|
|
13%
|
|
|
$
|
4,528
|
|
$
|
4,108
|
|
10%
|
|
11%
|
Apparel
|
|
|
1,221
|
|
|
1,131
|
|
8%
|
|
8%
|
|
|
|
2,468
|
|
|
2,235
|
|
10%
|
|
11%
|
Equipment
|
|
|
164
|
|
|
185
|
|
-11%
|
|
-12%
|
|
|
|
350
|
|
|
411
|
|
-15%
|
|
-15%
|
Total
|
|
|
3,547
|
|
|
3,241
|
|
9%
|
|
10%
|
|
|
|
7,346
|
|
|
6,754
|
|
9%
|
|
9%
|
Western Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
845
|
|
|
864
|
|
-2%
|
|
11%
|
|
|
|
1,973
|
|
|
1,991
|
|
-1%
|
|
15%
|
Apparel
|
|
|
391
|
|
|
384
|
|
2%
|
|
15%
|
|
|
|
825
|
|
|
881
|
|
-6%
|
|
8%
|
Equipment
|
|
|
63
|
|
|
64
|
|
-2%
|
|
11%
|
|
|
|
142
|
|
|
153
|
|
-7%
|
|
7%
|
Total
|
|
|
1,299
|
|
|
1,312
|
|
-1%
|
|
12%
|
|
|
|
2,940
|
|
|
3,025
|
|
-3%
|
|
13%
|
Central & Eastern Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
183
|
|
|
180
|
|
2%
|
|
23%
|
|
|
|
421
|
|
|
403
|
|
4%
|
|
28%
|
Apparel
|
|
|
126
|
|
|
149
|
|
-15%
|
|
5%
|
|
|
|
259
|
|
|
284
|
|
-9%
|
|
13%
|
Equipment
|
|
|
17
|
|
|
18
|
|
-6%
|
|
19%
|
|
|
|
47
|
|
|
53
|
|
-11%
|
|
11%
|
Total
|
|
|
326
|
|
|
347
|
|
-6%
|
|
15%
|
|
|
|
727
|
|
|
740
|
|
-2%
|
|
21%
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
600
|
|
|
463
|
|
30%
|
|
34%
|
|
|
|
1,199
|
|
|
903
|
|
33%
|
|
35%
|
Apparel
|
|
|
306
|
|
|
266
|
|
15%
|
|
19%
|
|
|
|
552
|
|
|
468
|
|
18%
|
|
20%
|
Equipment
|
|
|
32
|
|
|
29
|
|
10%
|
|
14%
|
|
|
|
73
|
|
|
66
|
|
11%
|
|
12%
|
Total
|
|
|
938
|
|
|
758
|
|
24%
|
|
28%
|
|
|
|
1,824
|
|
|
1,437
|
|
27%
|
|
29%
|
Japan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
128
|
|
|
108
|
|
19%
|
|
36%
|
|
|
|
250
|
|
|
208
|
|
20%
|
|
41%
|
Apparel
|
|
|
63
|
|
|
75
|
|
-16%
|
|
-4%
|
|
|
|
106
|
|
|
121
|
|
-12%
|
|
2%
|
Equipment
|
|
|
14
|
|
|
16
|
|
-13%
|
|
-7%
|
|
|
|
28
|
|
|
30
|
|
-7%
|
|
8%
|
Total
|
|
|
205
|
|
|
199
|
|
3%
|
|
17%
|
|
|
|
384
|
|
|
359
|
|
7%
|
|
25%
|
Emerging Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
674
|
|
|
727
|
|
-7%
|
|
12%
|
|
|
|
1,344
|
|
|
1,355
|
|
-1%
|
|
17%
|
Apparel
|
|
|
255
|
|
|
280
|
|
-9%
|
|
10%
|
|
|
|
493
|
|
|
532
|
|
-7%
|
|
10%
|
Equipment
|
|
|
55
|
|
|
68
|
|
-19%
|
|
4%
|
|
|
|
113
|
|
|
122
|
|
-7%
|
|
13%
|
Total
|
|
|
984
|
|
|
1,075
|
|
-8%
|
|
11%
|
|
|
|
1,950
|
|
|
2,009
|
|
-3%
|
|
15%
|
Global Brand Divisions3
|
|
|
18
|
|
|
27
|
|
-33%
|
|
-26%
|
|
|
|
44
|
|
|
56
|
|
-21%
|
|
-11%
|
Total NIKE Brand
|
|
|
7,317
|
|
|
6,959
|
|
5%
|
|
13%
|
|
|
|
15,215
|
|
|
14,380
|
|
6%
|
|
14%
|
Converse
|
|
|
398
|
|
|
434
|
|
-8%
|
|
-5%
|
|
|
|
953
|
|
|
1,009
|
|
-6%
|
|
-1%
|
Corporate4
|
|
|
(29)
|
|
|
(13)
|
|
—
|
|
—
|
|
|
|
(68)
|
|
|
(27)
|
|
—
|
|
—
|
Total NIKE, Inc. Revenues
|
|
$
|
7,686
|
|
$
|
7,380
|
|
4%
|
|
12%
|
|
|
$
|
16,100
|
|
$
|
15,362
|
|
5%
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NIKE Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
4,592
|
|
$
|
4,267
|
|
8%
|
|
16%
|
|
|
$
|
9,715
|
|
$
|
8,968
|
|
8%
|
|
17%
|
Apparel
|
|
|
2,362
|
|
|
2,285
|
|
3%
|
|
10%
|
|
|
|
4,703
|
|
|
4,521
|
|
4%
|
|
11%
|
Equipment
|
|
|
345
|
|
|
380
|
|
-9%
|
|
-1%
|
|
|
|
753
|
|
|
835
|
|
-10%
|
|
-2%
|
Global Brand Divisions3
|
|
|
18
|
|
|
27
|
|
-33%
|
|
-26%
|
|
|
|
44
|
|
|
56
|
|
-21%
|
|
-11%
|
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
|
|
%
|
|
|
SIX MONTHS ENDED
|
|
%
|
(Dollars in millions)
|
|
|
11/30/2015
|
|
|
11/30/20142
|
|
Change
|
|
|
|
11/30/2015
|
|
|
11/30/20142
|
|
Change
|
North America
|
|
$
|
882
|
|
$
|
785
|
|
12%
|
|
|
$
|
1,924
|
|
$
|
1,755
|
|
10%
|
Western Europe
|
|
|
307
|
|
|
261
|
|
18%
|
|
|
|
792
|
|
|
665
|
|
19%
|
Central & Eastern Europe
|
|
|
76
|
|
|
57
|
|
33%
|
|
|
|
174
|
|
|
126
|
|
38%
|
Greater China
|
|
|
327
|
|
|
258
|
|
27%
|
|
|
|
657
|
|
|
476
|
|
38%
|
Japan
|
|
|
47
|
|
|
29
|
|
62%
|
|
|
|
83
|
|
|
40
|
|
108%
|
Emerging Markets
|
|
|
241
|
|
|
236
|
|
2%
|
|
|
|
499
|
|
|
392
|
|
27%
|
Global Brand Divisions3
|
|
|
(625)
|
|
|
(554)
|
|
-13%
|
|
|
|
(1,249)
|
|
|
(1,088)
|
|
-15%
|
TOTAL NIKE BRAND
|
|
|
1,255
|
|
|
1,072
|
|
17%
|
|
|
|
2,880
|
|
|
2,366
|
|
22%
|
Converse
|
|
|
85
|
|
|
88
|
|
-3%
|
|
|
|
232
|
|
|
274
|
|
-15%
|
Corporate4
|
|
|
(365)
|
|
|
(273)
|
|
-34%
|
|
|
|
(688)
|
|
|
(515)
|
|
-34%
|
TOTAL EARNINGS BEFORE INTEREST AND TAXES
|
|
$
|
975
|
|
$
|
887
|
|
10%
|
|
|
$
|
2,424
|
|
$
|
2,125
|
|
14%
|
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 November 30, 2015
|
|
|
|
|
|
|
|
|
Reported Futures
|
|
|
Excluding Currency
|
|
|
Orders
|
|
|
Changes2
|
North America
|
|
14%
|
|
|
14%
|
Western Europe
|
|
17%
|
|
|
25%
|
Central & Eastern Europe
|
|
3%
|
|
|
13%
|
Greater China
|
|
31%
|
|
|
34%
|
Japan
|
|
26%
|
|
|
32%
|
Emerging Markets
|
|
0%
|
|
|
14%
|
Total NIKE Brand Reported Futures
|
|
15%
|
|
|
20%
|
1 Futures orders for NIKE Brand footwear and apparel
scheduled for delivery from December 2015 through April 2016. 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, 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 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/20151222005958/en/
Source: NIKE, Inc.