BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal
2018 second quarter ended November 30, 2017. For the quarter, revenue
growth was driven by international geographies and continued strength in
NIKE Direct, which was partly offset by an expected decline in North
America wholesale revenue.
Diluted earnings per share were $0.46, down 8 percent compared to the
same period last year due primarily to a decline in gross margin and
higher selling and administrative expense, which offset solid revenue
growth, a lower tax rate and a lower average share count.
“This quarter, led by our Consumer Direct Offense, we accelerated
international growth and built underlying momentum in our domestic
business,” said Mark Parker, Chairman, President and CEO, NIKE, Inc.
“For the back half of the fiscal year, NIKE’s innovation line-up is as
strong as it’s ever been and we’ll continue to actively shape retail
through new differentiated experiences.”*
Second Quarter Income Statement Review
-
Revenues for NIKE, Inc. increased 5 percent to
$8.6 billion, up 3 percent on a currency-neutral basis.**
-
Revenues for the NIKE Brand were $8.1 billion, up 4 percent on a
constant-currency basis, driven by EMEA, Greater China and APLA,
including growth in the Sportswear and NIKE Basketball categories.
-
Revenues for Converse were $408 million, down 4 percent on a
currency-neutral basis, as international growth was more than
offset by declines in North America.
-
Gross margin declined 120 basis points to 43.0 percent,
as higher average selling prices were more than offset by unfavorable
changes in foreign currency exchange rates and, to a lesser extent,
higher product costs per unit.
-
Selling and administrative expense increased 10 percent
to $2.8 billion. Demand creation expense was $877 million, up 15
percent, primarily driven by higher sports marketing and advertising
costs. Operating overhead expense increased 8 percent to $1.9 billion,
due largely to higher administrative costs and continued investments
in NIKE Direct.
-
Other expense, net was $18 million as net foreign
currency exchange losses were partially offset by non-operating items.
-
The effective tax rate was 12.7 percent, compared to
24.4 percent for the same period last year, reflecting the tax benefit
from stock-based compensation in the current period, as well as an
increase in the mix of earnings from operations outside of the U.S.,
which are generally subject to a lower tax rate.
-
Net income decreased 9 percent to $767 million as a
decline in gross margin and higher selling and administrative expense
more than offset revenue growth and a lower tax rate, while diluted
earnings per share decreased 8 percent from the prior year to
$0.46, including a 2 percent decline in the weighted average diluted
common shares outstanding.
November 30, 2017 Balance Sheet Review
-
Inventories for NIKE, Inc. were $5.3 billion, up 6
percent from November 30, 2016, driven primarily by changes in foreign
currency exchange rates and, to a lesser extent, an increase in NIKE
Brand units.
-
Cash and equivalents and short-term investments were
$6.4 billion, $446 million higher than last year due to net income,
and proceeds from debt issuance and employee exercises of stock
options, which more than offset share repurchases, dividends and
investments in infrastructure.
Share Repurchases
During the second quarter, NIKE, Inc. repurchased a total of 16.7
million shares for approximately $902 million as part of the four-year,
$12 billion program approved by the Board of Directors in November 2015.
As of November 30, 2017, a total of 111.8 million shares had been
repurchased under this program for approximately $6.2 billion.
Conference Call
NIKE, Inc. management will host a conference call beginning at
approximately 2:00 p.m. PT on December 21, 2017, 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, January 4,
2018.
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, markets and distributes athletic lifestyle
footwear, apparel and accessories; and Hurley, which designs, markets
and distributes surf and youth lifestyle footwear, 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.
Individuals can also visit http://news.nike.com
and follow @NIKE.
*
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The marked paragraph contains 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.
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**
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See additional information in the accompanying Divisional
Revenues table regarding this non-GAAP financial measure.
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(Tables Follow)
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NIKE, Inc.
|
CONSOLIDATED STATEMENTS OF INCOME
|
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|
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|
|
|
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|
|
|
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THREE MONTHS ENDED
|
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|
%
|
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SIX MONTHS ENDED
|
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%
|
(Dollars in millions, except per share data)
|
|
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|
11/30/2017
|
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|
11/30/2016
|
|
|
Change
|
|
|
11/30/2017
|
|
|
11/30/2016
|
|
|
Change
|
Revenues
|
|
|
|
$
|
8,554
|
|
|
|
$
|
8,180
|
|
|
|
5
|
%
|
|
|
$
|
17,624
|
|
|
|
$
|
17,241
|
|
|
|
2
|
%
|
Cost of sales
|
|
|
|
|
4,876
|
|
|
|
|
4,564
|
|
|
|
7
|
%
|
|
|
|
9,984
|
|
|
|
|
9,502
|
|
|
|
5
|
%
|
Gross profit
|
|
|
|
|
3,678
|
|
|
|
|
3,616
|
|
|
|
2
|
%
|
|
|
|
7,640
|
|
|
|
|
7,739
|
|
|
|
-1
|
%
|
Gross margin
|
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|
|
43.0
|
%
|
|
|
|
44.2
|
%
|
|
|
|
|
|
|
43.3
|
%
|
|
|
|
44.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Demand creation expense
|
|
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|
|
877
|
|
|
|
|
762
|
|
|
|
15
|
%
|
|
|
|
1,732
|
|
|
|
|
1,803
|
|
|
|
-4
|
%
|
Operating overhead expense
|
|
|
|
|
1,891
|
|
|
|
|
1,743
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|
|
|
8
|
%
|
|
|
|
3,892
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|
|
|
|
3,599
|
|
|
|
8
|
%
|
Total selling and administrative expense
|
|
|
|
|
2,768
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|
|
|
|
2,505
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|
|
10
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%
|
|
|
|
5,624
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|
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|
|
5,402
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|
4
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%
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% of revenues
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|
|
32.4
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%
|
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|
|
30.6
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%
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|
|
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|
|
31.9
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%
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|
|
|
31.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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Interest expense (income), net
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|
13
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|
|
|
|
15
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|
|
—
|
|
|
|
|
29
|
|
|
|
|
22
|
|
|
|
—
|
|
Other expense (income), net
|
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|
|
|
18
|
|
|
|
|
(18
|
)
|
|
|
—
|
|
|
|
|
36
|
|
|
|
|
(80
|
)
|
|
|
—
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|
Income before income taxes
|
|
|
|
|
879
|
|
|
|
|
1,114
|
|
|
|
-21
|
%
|
|
|
|
1,951
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|
|
|
|
2,395
|
|
|
|
-19
|
%
|
Income tax expense
|
|
|
|
|
112
|
|
|
|
|
272
|
|
|
|
-59
|
%
|
|
|
|
234
|
|
|
|
|
304
|
|
|
|
-23
|
%
|
Effective tax rate
|
|
|
|
|
12.7
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%
|
|
|
|
24.4
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%
|
|
|
|
|
|
|
12.0
|
%
|
|
|
|
12.7
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%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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NET INCOME
|
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|
$
|
767
|
|
|
|
$
|
842
|
|
|
|
-9
|
%
|
|
|
$
|
1,717
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|
|
|
$
|
2,091
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|
|
|
-18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Earnings per common share:
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|
|
|
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|
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Basic
|
|
|
|
$
|
0.47
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|
|
|
$
|
0.51
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|
|
|
-8
|
%
|
|
|
$
|
1.05
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|
|
|
$
|
1.26
|
|
|
|
-17
|
%
|
Diluted
|
|
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|
$
|
0.46
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|
|
|
$
|
0.50
|
|
|
|
-8
|
%
|
|
|
$
|
1.03
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|
|
|
$
|
1.23
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|
|
|
-16
|
%
|
|
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|
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Weighted average common shares outstanding:
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|
|
|
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|
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Basic
|
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|
1,627.0
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|
|
|
|
1,659.1
|
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|
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|
|
1,633.1
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|
|
|
|
1,665.6
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|
Diluted
|
|
|
|
|
1,660.9
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|
|
|
|
1,693.2
|
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|
|
|
|
1,669.1
|
|
|
|
|
1,701.3
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
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|
Dividends declared per common share
|
|
|
|
$
|
0.20
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|
|
|
$
|
0.18
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|
|
|
|
|
|
$
|
0.38
|
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 30,
|
|
|
November 30,
|
|
|
|
(Dollars in millions)
|
|
|
|
2017
|
|
|
2016
|
|
|
% Change
|
ASSETS
|
|
|
|
|
|
|
|
|
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|
Current assets:
|
|
|
|
|
|
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|
|
Cash and equivalents
|
|
|
|
$
|
4,304
|
|
|
$
|
4,339
|
|
|
-1
|
%
|
Short-term investments
|
|
|
|
|
2,085
|
|
|
|
1,604
|
|
|
30
|
%
|
Accounts receivable, net
|
|
|
|
|
3,613
|
|
|
|
3,478
|
|
|
4
|
%
|
Inventories
|
|
|
|
|
5,326
|
|
|
|
5,033
|
|
|
6
|
%
|
Prepaid expenses and other current assets
|
|
|
|
|
1,254
|
|
|
|
1,557
|
|
|
-19
|
%
|
Total current assets
|
|
|
|
|
16,582
|
|
|
|
16,011
|
|
|
4
|
%
|
Property, plant and equipment, net
|
|
|
|
|
4,117
|
|
|
|
3,566
|
|
|
15
|
%
|
Identifiable intangible assets, net
|
|
|
|
|
282
|
|
|
|
283
|
|
|
0
|
%
|
Goodwill
|
|
|
|
|
139
|
|
|
|
139
|
|
|
0
|
%
|
Deferred income taxes and other assets
|
|
|
|
|
2,935
|
|
|
|
2,653
|
|
|
11
|
%
|
TOTAL ASSETS
|
|
|
|
$
|
24,055
|
|
|
$
|
22,652
|
|
|
6
|
%
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
$
|
10
|
|
|
$
|
44
|
|
|
-77
|
%
|
Notes payable
|
|
|
|
|
1,229
|
|
|
|
20
|
|
|
—
|
|
Accounts payable
|
|
|
|
|
2,141
|
|
|
|
2,033
|
|
|
5
|
%
|
Accrued liabilities
|
|
|
|
|
3,278
|
|
|
|
3,076
|
|
|
7
|
%
|
Income taxes payable
|
|
|
|
|
92
|
|
|
|
52
|
|
|
77
|
%
|
Total current liabilities
|
|
|
|
|
6,750
|
|
|
|
5,225
|
|
|
29
|
%
|
Long-term debt
|
|
|
|
|
3,472
|
|
|
|
3,473
|
|
|
0
|
%
|
Deferred income taxes and other liabilities
|
|
|
|
|
2,075
|
|
|
|
1,631
|
|
|
27
|
%
|
Redeemable preferred stock
|
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
Shareholders' equity
|
|
|
|
|
11,758
|
|
|
|
12,323
|
|
|
-5
|
%
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
$
|
24,055
|
|
|
$
|
22,652
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
DIVISIONAL REVENUES1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
Currency
|
|
|
SIX MONTHS ENDED
|
|
|
%
|
|
|
Currency
|
(Dollars in millions)
|
|
|
|
11/30/2017
|
|
|
11/30/2016
|
|
|
Change
|
|
|
Changes2
|
|
|
11/30/2017
|
|
|
11/30/2016
|
|
|
Change
|
|
|
Changes2
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
$
|
2,070
|
|
|
$
|
2,219
|
|
|
-7
|
%
|
|
|
-7
|
%
|
|
|
$
|
4,504
|
|
|
$
|
4,737
|
|
|
-5
|
%
|
|
|
-5
|
%
|
Apparel
|
|
|
|
|
1,279
|
|
|
|
1,273
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
|
2,578
|
|
|
|
2,590
|
|
|
0
|
%
|
|
|
-1
|
%
|
Equipment
|
|
|
|
|
136
|
|
|
|
158
|
|
|
-14
|
%
|
|
|
-14
|
%
|
|
|
|
327
|
|
|
|
354
|
|
|
-8
|
%
|
|
|
-8
|
%
|
Total
|
|
|
|
|
3,485
|
|
|
|
3,650
|
|
|
-5
|
%
|
|
|
-5
|
%
|
|
|
|
7,409
|
|
|
|
7,681
|
|
|
-4
|
%
|
|
|
-4
|
%
|
Europe, Middle East & Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
1,290
|
|
|
|
1,116
|
|
|
16
|
%
|
|
|
11
|
%
|
|
|
|
2,761
|
|
|
|
2,573
|
|
|
7
|
%
|
|
|
6
|
%
|
Apparel
|
|
|
|
|
743
|
|
|
|
588
|
|
|
26
|
%
|
|
|
21
|
%
|
|
|
|
1,486
|
|
|
|
1,272
|
|
|
17
|
%
|
|
|
15
|
%
|
Equipment
|
|
|
|
|
100
|
|
|
|
88
|
|
|
14
|
%
|
|
|
10
|
%
|
|
|
|
230
|
|
|
|
209
|
|
|
10
|
%
|
|
|
9
|
%
|
Total
|
|
|
|
|
2,133
|
|
|
|
1,792
|
|
|
19
|
%
|
|
|
14
|
%
|
|
|
|
4,477
|
|
|
|
4,054
|
|
|
10
|
%
|
|
|
9
|
%
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
793
|
|
|
|
669
|
|
|
19
|
%
|
|
|
17
|
%
|
|
|
|
1,554
|
|
|
|
1,379
|
|
|
13
|
%
|
|
|
14
|
%
|
Apparel
|
|
|
|
|
397
|
|
|
|
355
|
|
|
12
|
%
|
|
|
11
|
%
|
|
|
|
706
|
|
|
|
624
|
|
|
13
|
%
|
|
|
14
|
%
|
Equipment
|
|
|
|
|
32
|
|
|
|
31
|
|
|
3
|
%
|
|
|
0
|
%
|
|
|
|
70
|
|
|
|
72
|
|
|
-3
|
%
|
|
|
-2
|
%
|
Total
|
|
|
|
|
1,222
|
|
|
|
1,055
|
|
|
16
|
%
|
|
|
15
|
%
|
|
|
|
2,330
|
|
|
|
2,075
|
|
|
12
|
%
|
|
|
13
|
%
|
Asia Pacific & Latin America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
873
|
|
|
|
818
|
|
|
7
|
%
|
|
|
9
|
%
|
|
|
|
1,700
|
|
|
|
1,605
|
|
|
6
|
%
|
|
|
8
|
%
|
Apparel
|
|
|
|
|
342
|
|
|
|
319
|
|
|
7
|
%
|
|
|
10
|
%
|
|
|
|
643
|
|
|
|
598
|
|
|
8
|
%
|
|
|
10
|
%
|
Equipment
|
|
|
|
|
58
|
|
|
|
69
|
|
|
-16
|
%
|
|
|
-15
|
%
|
|
|
|
119
|
|
|
|
134
|
|
|
-11
|
%
|
|
|
-10
|
%
|
Total
|
|
|
|
|
1,273
|
|
|
|
1,206
|
|
|
6
|
%
|
|
|
8
|
%
|
|
|
|
2,462
|
|
|
|
2,337
|
|
|
5
|
%
|
|
|
7
|
%
|
Global Brand Divisions3
|
|
|
|
|
23
|
|
|
|
21
|
|
|
10
|
%
|
|
|
19
|
%
|
|
|
|
43
|
|
|
|
36
|
|
|
19
|
%
|
|
|
17
|
%
|
TOTAL NIKE BRAND
|
|
|
|
|
8,136
|
|
|
|
7,724
|
|
|
5
|
%
|
|
|
4
|
%
|
|
|
|
16,721
|
|
|
|
16,183
|
|
|
3
|
%
|
|
|
3
|
%
|
Converse
|
|
|
|
|
408
|
|
|
|
416
|
|
|
-2
|
%
|
|
|
-4
|
%
|
|
|
|
891
|
|
|
|
990
|
|
|
-10
|
%
|
|
|
-11
|
%
|
Corporate4
|
|
|
|
|
10
|
|
|
|
40
|
|
|
—
|
|
|
|
—
|
|
|
|
|
12
|
|
|
|
68
|
|
|
—
|
|
|
|
—
|
|
TOTAL NIKE, INC. REVENUES
|
|
|
|
$
|
8,554
|
|
|
$
|
8,180
|
|
|
5
|
%
|
|
|
3
|
%
|
|
|
$
|
17,624
|
|
|
$
|
17,241
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NIKE BRAND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
$
|
5,026
|
|
|
$
|
4,822
|
|
|
4
|
%
|
|
|
3
|
%
|
|
|
$
|
10,519
|
|
|
$
|
10,294
|
|
|
2
|
%
|
|
|
2
|
%
|
Apparel
|
|
|
|
|
2,761
|
|
|
|
2,535
|
|
|
9
|
%
|
|
|
8
|
%
|
|
|
|
5,413
|
|
|
|
5,084
|
|
|
6
|
%
|
|
|
6
|
%
|
Equipment
|
|
|
|
|
326
|
|
|
|
346
|
|
|
-6
|
%
|
|
|
-7
|
%
|
|
|
|
746
|
|
|
|
769
|
|
|
-3
|
%
|
|
|
-3
|
%
|
Global Brand Divisions3
|
|
|
|
|
23
|
|
|
|
21
|
|
|
10
|
%
|
|
|
19
|
%
|
|
|
|
43
|
|
|
|
36
|
|
|
19
|
%
|
|
|
17
|
%
|
TOTAL NIKE BRAND REVENUES
|
|
|
|
$
|
8,136
|
|
|
$
|
7,724
|
|
|
5
|
%
|
|
|
4
|
%
|
|
|
$
|
16,721
|
|
|
$
|
16,183
|
|
|
3
|
%
|
|
|
3
|
%
|
1 Certain prior year amounts have been reclassified to
conform to fiscal 2018 presentation. This includes reclassified
operating segment data to reflect the changes in the Company's
operating structure, which became effective June 1, 2017. These
changes had no impact on previously reported consolidated results
of operations or shareholders' equity.
|
2 The percentage change has been calculated using
actual exchange rates in use during the comparative prior year
period to enhance the visibility of the underlying business trends
by excluding the impact of translation arising from foreign
currency exchange rate fluctuations, which is considered a
non-GAAP financial measure.
|
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 TAXES1,2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
SIX MONTHS ENDED
|
|
|
%
|
(Dollars in millions)
|
|
|
|
11/30/2017
|
|
|
11/30/2016
|
|
|
Change
|
|
|
11/30/2017
|
|
|
11/30/2016
|
|
|
Change
|
North America
|
|
|
|
$
|
783
|
|
|
|
$
|
912
|
|
|
|
-14
|
%
|
|
|
$
|
1,785
|
|
|
|
$
|
1,916
|
|
|
|
-7
|
%
|
Europe, Middle East & Africa
|
|
|
|
|
337
|
|
|
|
|
313
|
|
|
|
8
|
%
|
|
|
|
788
|
|
|
|
|
798
|
|
|
|
-1
|
%
|
Greater China
|
|
|
|
|
378
|
|
|
|
|
375
|
|
|
|
1
|
%
|
|
|
|
772
|
|
|
|
|
746
|
|
|
|
3
|
%
|
Asia Pacific & Latin America
|
|
|
|
|
291
|
|
|
|
|
266
|
|
|
|
9
|
%
|
|
|
|
551
|
|
|
|
|
475
|
|
|
|
16
|
%
|
Global Brand Divisions3
|
|
|
|
|
(602
|
)
|
|
|
|
(619
|
)
|
|
|
3
|
%
|
|
|
|
(1,277
|
)
|
|
|
|
(1,390
|
)
|
|
|
8
|
%
|
TOTAL NIKE BRAND
|
|
|
|
|
1,187
|
|
|
|
|
1,247
|
|
|
|
-5
|
%
|
|
|
|
2,619
|
|
|
|
|
2,545
|
|
|
|
3
|
%
|
Converse
|
|
|
|
|
48
|
|
|
|
|
78
|
|
|
|
-38
|
%
|
|
|
|
137
|
|
|
|
|
231
|
|
|
|
-41
|
%
|
Corporate4
|
|
|
|
|
(343
|
)
|
|
|
|
(196
|
)
|
|
|
-75
|
%
|
|
|
|
(776
|
)
|
|
|
|
(359
|
)
|
|
|
-116
|
%
|
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES
|
|
|
|
|
892
|
|
|
|
|
1,129
|
|
|
|
-21
|
%
|
|
|
|
1,980
|
|
|
|
|
2,417
|
|
|
|
-18
|
%
|
Interest expense (income), net
|
|
|
|
|
13
|
|
|
|
|
15
|
|
|
|
—
|
|
|
|
|
29
|
|
|
|
|
22
|
|
|
|
—
|
|
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES
|
|
|
|
$
|
879
|
|
|
|
$
|
1,114
|
|
|
|
-21
|
%
|
|
|
$
|
1,951
|
|
|
|
$
|
2,395
|
|
|
|
-19
|
%
|
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 tax expense.
|
2 Certain prior year amounts have been reclassified to
conform to fiscal 2018 presentation. This includes reclassified
operating segment data to reflect the changes in the Company's
operating structure, which became effective June 1, 2017. These
changes had no impact on previously reported consolidated 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.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171221005979/en/
Source: NIKE, Inc.