Summary
NIKE, Inc. demonstrated solid performance in fiscal year 2007, reporting revenue growth of 9% to $16.3 billion and a 7% increase in net income to $1.5 billion. Diluted earnings per share also saw a healthy 11% increase to $2.93. The company's strategy focuses on delivering premium consumer experiences, innovative products, and operational excellence. A notable event impacting reported results was the adoption of SFAS No. 123R for stock-based compensation, which led to a $141.9 million pre-tax charge, alongside the settlement of a Converse arbitration. Excluding these items, net income grew by 11% and diluted EPS by 15%, highlighting the underlying strength of the business. The company also benefited from a reduced effective tax rate due to a European tax agreement. NIKE continued to return capital to shareholders through increased dividends and share repurchases, signaling confidence in its ongoing financial health and future prospects. Geographically, all four major regions and all three product business units contributed to revenue growth, with particular strength noted in the Asia Pacific region, driven by China.
Key Highlights
- 1Revenue grew 9% to $16.3 billion in fiscal year 2007.
- 2Net income increased by 7% to $1.5 billion.
- 3Diluted Earnings Per Share (EPS) rose 11% to $2.93.
- 4All four geographic regions and three product business units contributed to revenue growth.
- 5The company adopted SFAS No. 123R for stock-based compensation, impacting reported expenses.
- 6NIKE returned capital to shareholders through increased dividends and share repurchases.
- 7Foot Locker, Inc. represented approximately 10% of global net sales.