Summary
NIKE, Inc. reported strong financial results for the first quarter of fiscal year 2015, with revenues increasing 15% to $8.0 billion and net income rising 23% to $962 million. Diluted earnings per share also saw a significant increase of 27% to $1.09. This growth was driven by robust performance across all geographies for the NIKE Brand, which represents over 90% of total revenues, and a 16% increase in Converse revenues. The company benefited from a lower effective tax rate, which decreased by 330 basis points due to audit resolutions and a higher proportion of earnings from international operations. The company continued its commitment to shareholder returns through a significant share repurchase program, utilizing $819 million in the quarter. The NIKE Brand experienced strong constant currency revenue growth of 15%, with notable contributions from North America and Western Europe. Footwear and apparel sales both saw double-digit growth. The Direct-to-Consumer (DTC) channel continues to be a key growth driver, with DTC revenues increasing 30% on a currency-neutral basis and now representing 23% of NIKE Brand revenues, up from 20% in the prior year. This growth was supported by strong comparable store sales and a 70% surge in online sales. Futures orders also show positive momentum, increasing 14% on a currency-neutral basis, indicating continued demand.
Financial Highlights
49 data points| Revenue | $7.98B |
| Cost of Revenue | $4.26B |
| Gross Profit | $3.72B |
| SG&A Expenses | $2.48B |
| Net Income | $962.00M |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.55 |
| Shares Outstanding (Basic) | 1.73B |
| Shares Outstanding (Diluted) | 1.77B |
Key Highlights
- 1Revenues increased by 15% year-over-year to $7.98 billion.
- 2Net income grew by 23% to $962 million, with diluted EPS up 27% to $1.09.
- 3NIKE Brand revenue increased 15% (constant currency), driven by strong performance across all geographies.
- 4Direct-to-Consumer (DTC) revenue surged 30% on a currency-neutral basis, now representing 23% of NIKE Brand revenues.
- 5Gross margin improved by 170 basis points to 46.6%, driven by higher average selling prices and the growing DTC business.
- 6Selling and administrative expenses increased 21% driven by higher demand creation and investments in the DTC business.
- 7The company repurchased $819 million of common stock during the quarter as part of its ongoing share repurchase program.