What was NIKE's revenue and net income performance in the reported period?

For the third quarter of fiscal 2016, NIKE reported revenues of $8.0 billion, an increase of 8% over the prior year. Net income for the quarter was $950 million, a 20% increase year-over-year. For the first nine months of fiscal 2016, revenues reached $24.1 billion (up 6%) and net income was $2.9 billion (up 21%).

How did the NIKE Brand and Converse segments perform?

The NIKE Brand continues to be the primary growth engine, with revenues up 9% on a reported basis (15% excluding currency) for the third quarter. Converse experienced a revenue decline of 9% on a reported basis (-5% excluding currency), primarily due to unfavorable comparisons to the prior year related to a systems upgrade.

What is driving the strong Direct-to-Consumer (DTC) growth?

NIKE's DTC business is growing robustly, with NIKE Brand DTC revenues up 29% in the third quarter on a currency-neutral basis. This growth is attributed to strong online sales, comparable store sales growth, and the addition of new stores, indicating successful execution of the company's strategy to engage directly with consumers.

How is NIKE managing foreign currency fluctuations?

NIKE employs a comprehensive foreign exchange risk management program, utilizing derivatives like forwards and options to hedge transactional and translational exposures. For the third quarter, currency fluctuations had a net unfavorable impact on revenues, but the company's hedging strategies helped mitigate some of the adverse effects on profitability. The company reported strong currency-neutral growth, highlighting the underlying strength of its business operations.

NKE 10-Q Quarterly Report Q3 FY2016 — Revenue, Net Income, EPS

Summary

NIKE, Inc. reported strong financial results for the third quarter and the first nine months of fiscal year 2016, reflecting continued revenue growth and increased profitability. Revenues for the third quarter rose 8% to $8.0 billion, with a significant portion of this growth driven by a 14% increase on a currency-neutral basis. Net income for the quarter saw a substantial 20% increase, reaching $950 million, with diluted earnings per share growing 22% to $0.55. The company's performance was boosted by robust demand for the NIKE Brand across all geographic regions, particularly in North America and Greater China, which contributed significantly to the revenue increase. The Direct-to-Consumer (DTC) channel, including owned stores and e-commerce, showed particularly strong growth, accounting for a larger percentage of total NIKE Brand revenues and demonstrating effective execution of the company's digital and retail strategies. Management highlighted the positive impact of innovative products and strong brand connections in driving consumer demand. The company also continued its commitment to returning capital to shareholders through its share repurchase program.

Financial Highlights

50 data points

Beta

Revenue

$8.03B

0.5% Gross Margin

Net Income

$950.00M

0.1% Net Margin

EPS (Diluted)

$0.55

Total Assets

$20.99B

Cash & Equivalents

$3.04B

Free Cash Flow

$590.00M

Financial Statements

Beta

Revenue	$8.03B
Cost of Revenue	$4.34B
Gross Profit	$3.69B
SG&A Expenses	$2.57B
Net Income	$950.00M
EPS (Basic)	$0.56
EPS (Diluted)	$0.55
Shares Outstanding (Basic)	1.69B
Shares Outstanding (Diluted)	1.74B

Key Highlights

1Revenues increased by 8% to $8.0 billion for the third quarter of fiscal 2016, and by 6% to $24.1 billion for the first nine months.
2Net income grew by 20% to $950 million in the third quarter, and by 21% to $2.9 billion for the nine-month period.
3Diluted earnings per common share increased by 22% to $0.55 for the third quarter and by 23% to $1.67 for the nine months.
4Currency-neutral revenue growth was strong, at 14% for both the third quarter and the first nine months, indicating underlying business strength.
5The Direct-to-Consumer (DTC) channel continues to be a key growth driver, with NIKE Brand DTC revenues up 29% in the third quarter on a currency-neutral basis.
6Futures orders for the NIKE Brand increased 12% on a reported basis (17% excluding currency), signaling continued demand for upcoming seasons.
7The company's effective tax rate decreased significantly to 16.3% for the third quarter and 17.9% for the nine months, benefiting from a higher proportion of earnings from lower-tax international operations and the reinstatement of the U.S. R&D tax credit.

NIKE, Inc. Quarterly Report for Q3 Ended Feb 29, 2016

Summary

Financial Highlights

Key Highlights

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