Summary
NIKE, Inc. reported strong financial results for the second quarter and first six months of fiscal year 2015, demonstrating robust revenue growth and improved profitability. Total revenues increased by 15% for both periods, with constant currency revenue growth even stronger at 18% and 16% respectively. This growth was broad-based, with the NIKE Brand seeing a 17% constant currency increase and Converse showing a 24% increase in the quarter. Net income saw a significant increase of 23% for both periods, translating into a 25% rise in diluted earnings per share for the quarter and a 27% rise year-to-date, outpacing net income growth due to a reduction in outstanding shares from the company's share repurchase program. Key drivers of this performance include strong demand across all geographies for NIKE Brand products, fueled by innovative product offerings and effective marketing. The Direct-to-Consumer (DTC) channel continued its impressive expansion, growing 30% on a currency-neutral basis and representing a larger portion of total NIKE Brand revenues. Gross margin improved significantly, up 120 basis points for the quarter and 140 basis points year-to-date, driven by higher average selling prices and the growth of the higher-margin DTC business. Investments in demand creation and operating overhead continue, supporting brand strength and future growth initiatives.
Financial Highlights
50 data points| Revenue | $7.38B |
| Cost of Revenue | $4.05B |
| Gross Profit | $3.33B |
| SG&A Expenses | $2.44B |
| Net Income | $655.00M |
| EPS (Basic) | $0.38 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 1.73B |
| Shares Outstanding (Diluted) | 1.77B |
Key Highlights
- 1Revenues increased by 15% to $7.4 billion for the second quarter of fiscal 2015, with constant currency growth at 18%.
- 2Net income rose 23% to $655 million for the second quarter, and diluted earnings per share grew 25% to $0.74.
- 3NIKE Brand revenue grew 17% on a constant currency basis, supported by strong performance across all geographies.
- 4Converse revenue saw significant growth of 21% (24% in constant currency) in the second quarter.
- 5Gross margin improved by 120 basis points to 45.1% in the second quarter, driven by higher average selling prices and DTC growth.
- 6Direct-to-Consumer (DTC) revenue grew 30% on a currency-neutral basis, now representing approximately 21% of NIKE Brand revenues.
- 7The company repurchased approximately $1.2 billion of common stock during the quarter as part of its ongoing share repurchase program.