World Footwear

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Outstanding year for Nike

Jun 30, 2015 United States
Outstanding year for Nike
Revenue generated by the giant sports group was up by 5% in the fourth quarter. Annual revenue growth reached 10%
“Fiscal 2015 was an outstanding year for Nike,” stated Mark Parker, President and CEO, Nike, Inc., adding: “Our consistent growth is fueled by our connection to the consumer and our ability to deliver innovation at an unprecedented pace and scale. At no time in our history has the growth potential been greater for Nike.”

In the fourth quarter of the fiscal year (ended on the 31st of May) revenue for  reached 7.8 billion US dollars, up by 5% on a current currency basis, up by 13% on a currency-neutral basis.

Revenues for the Nike brand were 7.4 billion US dollars, up by 13 % on a currency-neutral basis (5% up in current currency basis) driven by growth in nearly every geography and key category except Emerging Markets and Global Football.

Revenues for Converse were 435 million US dollars, up by 14% on a currency-neutral basis (+6% current basis), mainly driven by market transitions to direct distribution in AGS (Austria, Germany and Switzerland) and strong performance in the United States.

Net income increased by 24% reaching 865 million US dollars, reflecting strong revenue growth and gross margin expansion, a lower tax rate and a decrease in the weighted average diluted common shares outstanding.

Total revenue for the entire financial year for Nike, Inc. rose 10% totaling 30.6 billion US dollars (up by 14% on a currency-neutral basis). Revenue for the Nike brand reached 28.7 billion US dollars, up by 14%, excluding the impact of changes in foreign currency.

Nike brand sales to wholesale customers increased 10 percent on a currency-neutral basis (6% current basis) while Direct-to-Customers (DTC) revenue grew to 6.6 billion US dollars, up by 29% excluding the impact of changes in foreign currency (+25% current currency), driven by 16% growth in comparable store sales, a 59% increase in online sales and the addition of new stores. As of the end of May the Nike brand had 832 DTC stores in operation as compared to 768 a year ago.

On a currency neutral basis, Nike brand revenue performance was driven by growth in every geography, every key category except Global Football and across the Women’s, Men’s and Young Athletes’ businesses.

Revenue for converse totaled 2.0 billion US dollars, up by 21% on a currency neutral basis, mainly driven by market transitions to direct distribution in AGS (Austria, Germany and Switzerland) and strong performance in the United States.

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