Summary
NIKE, Inc. reported robust growth in its fiscal year ended May 31, 2011, with revenues increasing by 10% to $20.9 billion and diluted earnings per share rising by 14% to $4.39. This performance was driven by broad-based demand across most NIKE Brand geographies, particularly in North America, Emerging Markets, and Greater China, supported by innovative product lines and strong retail execution. The company's Direct to Consumer (DTC) business also showed significant expansion, with DTC revenues growing 16% on a currency-neutral basis, representing 16% of total NIKE Brand revenues. This highlights the increasing importance of direct engagement with consumers through owned retail stores and e-commerce. While gross margins saw a slight decline due to increased input and transportation costs, the company is focusing on operational excellence, cost reduction, and effective capital deployment to drive sustained, profitable long-term growth. Investors should note the company's commitment to returning capital to shareholders through share repurchases and dividends.
Financial Highlights
52 data points| Revenue | $20.12B |
| Cost of Revenue | $10.91B |
| Gross Profit | $9.20B |
| SG&A Expenses | $6.36B |
| Operating Income | $2.17B |
| Net Income | $2.13B |
| EPS (Basic) | $1.12 |
| EPS (Diluted) | $1.10 |
| Shares Outstanding (Basic) | 1.90B |
| Shares Outstanding (Diluted) | 1.94B |
Key Highlights
- 1Revenue growth of 10% to $20.9 billion in fiscal year 2011.
- 2Diluted earnings per share increased by 14% to $4.39.
- 3Strong performance in North America, Emerging Markets, and Greater China geographies.
- 4Direct to Consumer (DTC) revenues grew 16% on a currency-neutral basis, indicating a successful expansion of direct sales channels.
- 5Gross margin slightly decreased by 70 basis points to 45.6% due to higher input and transportation costs.
- 6The company repurchased 23.8 million shares for $1.9 billion under its $5 billion share repurchase program.
- 7Diversified revenue streams across NIKE Brand products (footwear, apparel, equipment) and Other Businesses (Cole Haan, Converse, Hurley, Umbro, NIKE Golf).