World Footwear

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Nike's recovery in the last quarter

Jun 28, 2018 / United States
Nike's recovery in the last quarter
Fourth quarter revenue increased by 13% totaling 9.8 billion US dollars, driven by strong double-digit revenue growth in international markets and Nike Direct globally and a return to growth in North America
“Our new innovation is winning with consumers, driving significant momentum in our international geographies and a return to growth in North America”, stated Mark Parker, Chairman, President and CEO of NIKE, Inc., adding: “Fueled by a complete digital transformation of our company end-to-end, this year set the foundation for Nike’s next wave of long-term, sustainable growth and profitability.”

 

Fourth Quarter Income Statement Review


In the fourth quarter of hte financial year, Nike's revenue increased by 13% totaling 9.8 billion US dollars (up by 8% on a currency-neutral basis). 

Revenue for the Nike brand reached 9.3 billion US dollars, up by 9% on a currency-neutral basis, driven by double-digit increases in Nike Direct, international geographies, Sportswear, Global Football and growth in North America. Revenue for Converse totaled 512 million US dollars, down by 14% on a currency-neutral basis, as growth in Asia was more than offset by declines in other territories.

Net income increased by 13% to 1.1 billion US dollars primarily due to strong global revenue growth, gross margin expansion and a lower tax rate, which were partially offset by higher selling and administrative expense, while diluted earnings per share increased 15% to 0.69 US dollars reflecting a 2% decline in the weighted average diluted common shares outstanding.

 

Fiscal 2018 income statement


Revenue for Nike rose by 6% to totaling 36.4 billion US dollars, up by 4% on a currency-neutral basis. O a currency-neutral basis revenue for the Nike brand was 34.5 billion US dollars, up by 5%.

Nike brand sales to wholesale customers increased by 2% while Nike Direct revenues grew by 12% reaching 10.4 billion US dollars, driven by a 25% increase in digital commerce sales, the addition of new stores and 4 percent growth in comparable store sales. Nike brand revenue growth was driven by continued strength in international markets and Nike Direct with growth across footwear and apparel and key categories including Sportswear and Nike Basketball.

Revenue for Converse totaled 1.9 billion US dollars, down by 11%, as growth in Asia was more than offset by declines primarily in North America.

Net income in fiscal 2018 decreased 54% to 1.9 billion US dollars primarily related to the impact of the Tax Act, which offset strong revenue growth. Diluted earnings per share decreased 53% to 1.17 US dollars, which includes a decline in the weighted average diluted common shares outstanding.

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