What is the overall financial performance trend for NIKE in this reporting period?

NIKE demonstrated a positive financial performance trend in the third quarter of fiscal year 2002. Revenue and net income showed notable increases compared to the same period in the prior year, driven by strong U.S. sales and continued growth in Asia. This indicates a rebound from earlier challenges in the fiscal year.

How did international sales perform compared to the U.S. market?

While the U.S. market showed a strong recovery with a 5.3% revenue increase in the quarter, international revenues grew at a slower pace of 2.7% (0.6% decline in reported currency for EMEA, but 19.4% growth in Asia Pacific). The EMEA region experienced some headwinds, but Asia Pacific continued to show robust growth.

What is the company's cash flow situation?

The company generated a substantial $519.4 million in cash from operations for the nine-month period ending February 28, 2002, a significant improvement from the prior year. Investing activities used cash primarily for property, plant, and equipment additions. Financing activities saw significant debt issuance and reductions in notes payable, alongside ongoing share repurchases and dividend payments.

Are there any significant changes in the company's balance sheet?

Key changes in the balance sheet include an increase in cash and equivalents, a substantial rise in accounts receivable, and a decrease in notes payable, offset by an increase in long-term debt. Inventories remained relatively stable. Overall assets and liabilities increased, reflecting the company's growth and financing activities.

NKE 10-Q Quarterly Report Q3 FY2002 — Revenue, Net Income, EPS

Summary

NIKE, Inc.'s third quarter and nine-month results for the period ending February 28, 2002, demonstrate a return to stronger growth, particularly in the U.S. market. The company reported a 4.2% increase in revenue for the quarter to $2.26 billion, driven by robust footwear sales in the U.S. and continued strength in the Asia Pacific region. Net income also saw a significant increase of 29.7% for the quarter, benefiting from improved gross margins, controlled selling and administrative expenses, and a lower effective tax rate. This performance marks a rebound from earlier in the fiscal year, which was impacted by post-September 11th economic uncertainty and prior supply chain implementation issues. The nine-month period showed more modest revenue growth of 2.9% to $7.21 billion, with net income increasing 7.7% (excluding an accounting change charge). While international markets showed mixed performance, with the EMEA region facing some headwinds from fashion brand competition and shipment delays, the Asia Pacific and Americas regions demonstrated growth. Investors should note the company's ongoing efforts to manage inventory and the impact of foreign exchange rates, which moderated reported revenue growth.

Key Highlights

1Revenue for the third quarter increased by 4.2% to $2.26 billion, driven by a 5.3% increase in U.S. revenue.
2Net income for the third quarter surged by 29.7% to $126.3 million, with diluted EPS growing from $0.35 to $0.46.
3U.S. footwear revenue saw a 7% increase in the quarter, recovering from previous supply chain issues and showing strong market demand.
4Asia Pacific revenues continued strong growth, up 10.0% in the quarter, indicating robust demand in the region.
5The company's effective tax rate decreased, contributing to a higher net income growth rate compared to pre-tax income growth.
6Long-term debt increased significantly due to new issuances, while notes payable decreased, indicating a shift in financing structure.
7Cash provided by operations improved considerably for the nine-month period, reaching $519.4 million, up from $357.5 million in the prior year.

NIKE, Inc. Quarterly Report for Q3 Ended Feb 28, 2002

Summary

Key Highlights

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