Summary
NIKE, Inc. reported strong financial performance for the second quarter and first six months of fiscal year 2017, ending November 30, 2016. Revenues grew 6% year-over-year to $8.2 billion for the quarter and 7% to $17.2 billion for the six-month period, with a significant portion of this growth on a currency-neutral basis, indicating underlying business strength. Net income increased 7% to $842 million for the quarter and 6% to $2.1 billion for the six months. Diluted earnings per share also saw a healthy increase of 11% and 10% respectively. The company's Direct to Consumer (DTC) channel continues to be a key growth driver, with DTC revenues representing approximately 28% of NIKE Brand revenues in the second quarter, up from 24% in the prior year. Digital commerce sales experienced particularly robust growth, up 49% year-over-year. While gross margin saw a slight decrease due to factors like higher product costs and unfavorable currency impacts, overall revenue growth and disciplined management of selling and administrative expenses led to improved profitability. The company also continued its aggressive share repurchase program, demonstrating a commitment to returning capital to shareholders.
Financial Highlights
50 data points| Revenue | $8.18B |
| Cost of Revenue | $4.56B |
| Gross Profit | $3.62B |
| SG&A Expenses | $2.50B |
| Net Income | $842.00M |
| EPS (Basic) | $0.51 |
| EPS (Diluted) | $0.50 |
| Shares Outstanding (Basic) | 1.66B |
| Shares Outstanding (Diluted) | 1.69B |
Key Highlights
- 1Total revenues increased 6% to $8.2 billion for the second quarter and 7% to $17.2 billion for the first six months of fiscal 2017.
- 2On a currency-neutral basis, revenues grew 8% for the second quarter and 9% for the first six months, highlighting strong underlying business performance.
- 3Net income rose 7% to $842 million for the quarter and 6% to $2.1 billion for the six months.
- 4Diluted earnings per common share increased by 11% to $0.50 for the quarter and 10% to $1.23 for the six months.
- 5Direct to Consumer (DTC) revenues continued to grow, representing 28% of NIKE Brand revenues for the quarter, up from 24% in the prior year.
- 6Digital commerce sales saw exceptional growth, increasing by 49% year-over-year.
- 7The company actively repurchased shares, buying back 16.9 million shares for approximately $9.1 billion during the quarter under its $12 billion program.