Summary
NIKE, Inc.'s 10-K filing for the fiscal year ending May 31, 2015, reveals a robust performance characterized by significant revenue growth and expanding gross margins. The company reported record revenues of $30.6 billion, a 10% increase year-over-year, driven by strong demand across its NIKE Brand geographies and categories, particularly in footwear and apparel. Despite facing headwinds from foreign currency fluctuations, NIKE demonstrated resilience, with net income from continuing operations rising 22% to $3.3 billion and diluted earnings per share increasing 25% to $3.70. Key growth drivers included innovative product offerings utilizing proprietary technologies, strong brand connections fostered through athlete endorsements and marketing campaigns, and an expanding Direct to Consumer (DTC) channel, which saw a 29% currency-neutral revenue increase. The company also highlighted its commitment to operational excellence, margin expansion, and effective capital deployment, including a significant share repurchase program. While risks related to competition, consumer preferences, currency exchange rates, and global economic conditions are acknowledged, NIKE's financial results indicate a strong operational footing and a positive outlook for continued growth.
Financial Highlights
50 data points| Revenue | $30.60B |
| Cost of Revenue | $16.53B |
| Gross Profit | $14.07B |
| SG&A Expenses | $9.89B |
| Operating Income | $3.27B |
| Net Income | $3.27B |
| EPS (Basic) | $1.90 |
| EPS (Diluted) | $1.85 |
| Shares Outstanding (Basic) | 1.72B |
| Shares Outstanding (Diluted) | 1.77B |
Key Highlights
- 1Record revenues of $30.6 billion in fiscal year 2015, a 10% increase year-over-year, with a 14% increase excluding currency changes.
- 2Net income from continuing operations increased 22% to $3.3 billion, and diluted earnings per common share grew 25% to $3.70.
- 3Gross margin expanded by 120 basis points to 46.0%, driven by higher average selling prices and growth in higher-margin DTC businesses.
- 4Direct to Consumer (DTC) revenue grew 29% on a currency-neutral basis, representing 23% of total NIKE Brand revenues.
- 5NIKE Brand footwear revenues increased 17% (currency-neutral), driven by strong performance in Sportswear, Basketball, Running, and Football (Soccer) categories.
- 6The company repurchased approximately 29.0 million shares of Class B Common Stock for $2.5 billion during fiscal year 2015.
- 7Converse brand demonstrated strong growth, with revenue and EBIT increasing by 18% and 4% respectively.