10-KPeriod: FY2021

NIKE, Inc. Annual Report, Year Ended May 31, 2021

Filed July 20, 2021For Securities:NKE

Summary

NIKE, Inc.'s fiscal year 2021 filing indicates a strong recovery and significant growth, with revenues reaching a record $44.5 billion, a 19% increase year-over-year. This performance was driven by a robust rebound across all geographic segments, particularly in NIKE Direct, which saw a 30% increase on a currency-neutral basis, fueled by a 60% surge in digital sales. The company demonstrated improved profitability, with income before income taxes increasing by 131% and gross margins expanding by 140 basis points. This was attributed to higher revenues, favorable product margins, and efficiencies gained from lower demand creation expenses and the annualization of COVID-19 impacts. NIKE also maintained a strong liquidity position with substantial cash reserves. Looking ahead, NIKE is focused on its "Consumer Direct Acceleration" strategy, aiming to further enhance consumer experiences through digital platforms and strategic retail partnerships, align product offerings around consumer needs (Men's, Women's, Kids'), and unify technology investments. The company is confident in its ability to achieve high single-digit to low double-digit revenue growth and mid-to-high teens diluted earnings per share growth by fiscal 2025.

Financial Highlights

49 data points
Beta

Revenue

$44.54B

44.8% Gross Margin

Net Income

$5.73B

12.9% Net Margin

EPS (Diluted)

$3.56

Total Assets

$37.74B

Cash & Equivalents

$9.89B

Free Cash Flow

$5.96B

Financial Statements
Beta
Revenue$44.54B
Cost of Revenue$24.58B
Gross Profit$19.96B
SG&A Expenses$13.03B
Net Income$5.73B
EPS (Basic)$3.64
EPS (Diluted)$3.56
Shares Outstanding (Basic)1.57B
Shares Outstanding (Diluted)1.61B

Key Highlights

  • 1Record Revenue: Achieved $44.5 billion in revenue for fiscal year 2021, a 19% increase compared to the prior year.
  • 2Strong Digital Growth: NIKE Direct revenue increased by 30% on a currency-neutral basis, with digital commerce sales growing by 60%.
  • 3Profitability Improvement: Income before income taxes surged by 131% due to higher revenues, gross margin expansion, and operating leverage.
  • 4Gross Margin Expansion: Gross margin increased by 140 basis points to 44.8%, driven by higher full-price product margins and favorable cost impacts.
  • 5Robust Liquidity: Ended the fiscal year with $13.5 billion in cash and equivalents and short-term investments.
  • 6Strategic Focus: Advancing the 'Consumer Direct Acceleration' strategy to enhance digital experiences, align product categories, and unify technology investments.
  • 7Shareholder Returns: Resumed share repurchases under its authorized program, repurchasing approximately 4.9 million shares in fiscal year 2021.

Frequently Asked Questions

NIKE reported record revenues of $44.5 billion, a 19% increase year-over-year. The company also saw significant growth in profitability, with income before income taxes rising by 131%, and a strong improvement in its gross margin by 140 basis points. This performance reflects a strong recovery from the impacts of the COVID-19 pandemic.

The NIKE Direct business was a key growth driver, increasing by 30% on a currency-neutral basis. Digital commerce sales experienced exceptional growth of 60%, underscoring the success of NIKE's digital-first strategy. Comparable store sales also saw a modest increase of 4% despite ongoing pandemic-related impacts.

NIKE is focused on its 'Consumer Direct Acceleration' strategy. This involves creating a premium and seamless marketplace by leading with NIKE Digital and owned stores, aligning product creation around Men's, Women's, and Kids' categories, and unifying investments in data, analytics, and technology to accelerate digital transformation.

Despite global supply chain disruptions, including container shortages and transportation delays, NIKE achieved record revenues. The company ended the fiscal year with inventories down 7% compared to the prior year, indicating effective inventory management amidst strong consumer demand and ongoing supply chain monitoring.