What was the primary driver of revenue growth in this quarter?

Revenue growth was primarily driven by a 10% increase in total revenues, reaching $9.9 billion. This growth was broad-based across NIKE Brand geographies and the Converse segment, with a 9% increase on a currency-neutral basis. Strong performance in Greater China (up 24%) and continued growth in NIKE Direct channels, particularly digital commerce which surged by 34%, were key contributors.

How did the new U.S. tax law impact Nike's financial results?

The U.S. Tax Cuts and Jobs Act led to an increase in Nike's effective tax rate to 14.0% for the quarter, up from 11.4% in the prior year's comparable quarter. The company is still analyzing the full impact and provisional amounts recorded related to the tax reform.

What is the significance of the growth in NIKE Direct and digital sales?

The growth in NIKE Direct (up 12% currency-neutral) and especially digital commerce sales (up 34%) highlights Nike's successful execution of its Consumer Direct Offense strategy. This shift towards direct-to-consumer channels allows for greater consumer connection, higher margins, and better control over brand experience, which is crucial for future growth.

How is Nike managing its inventory and margins?

Nike reported a 50 basis point improvement in gross margin to 44.2%. This was achieved through higher full-price average selling prices (ASP) and a more favorable sales mix, indicating reduced promotional activity. While product costs increased, the company effectively offset these pressures through pricing and mix strategies.

NKE 10-Q Quarterly Report Q1 FY2019 — Revenue, Net Income, EPS

Summary

NIKE, Inc. reported a strong first quarter for fiscal year 2019, with revenues increasing by 10% to $9.9 billion, driven by broad-based growth across its NIKE Brand geographies and the Converse segment. On a currency-neutral basis, revenue growth was 9%. Net income rose by 15% to $1,092 million, with diluted earnings per common share increasing to $0.67 from $0.57 in the prior year, reflecting both top-line growth and improved operating leverage. The company's effective tax rate increased to 14.0% from 11.4%, primarily due to the impact of the U.S. Tax Cuts and Jobs Act. Gross margin improved by 50 basis points to 44.2%, benefiting from higher full-price average selling prices (ASP) and a favorable sales mix, partially offset by increased product costs. The company continued to execute its Consumer Direct Offense strategy, with NIKE Direct revenues growing 12% on a currency-neutral basis, supported by a significant 34% increase in digital commerce sales.

Financial Highlights

49 data points

Beta

Revenue

$9.95B

0.4% Gross Margin

Net Income

$1.09B

0.1% Net Margin

EPS (Diluted)

$0.67

Total Assets

$22.48B

Cash & Equivalents

$3.28B

Free Cash Flow

$958.00M

Financial Statements

Beta

Revenue	$9.95B
Cost of Revenue	$5.55B
Gross Profit	$4.40B
SG&A Expenses	$3.06B
Net Income	$1.09B
EPS (Basic)	$0.69
EPS (Diluted)	$0.67
Shares Outstanding (Basic)	1.59B
Shares Outstanding (Diluted)	1.63B

Key Highlights

1Total revenues grew 10% to $9.9 billion, with a 9% increase on a currency-neutral basis.
2Net income increased 15% to $1,092 million, and diluted EPS rose to $0.67 from $0.57.
3Gross margin improved by 50 basis points to 44.2%, driven by higher full-price ASP and favorable mix.
4NIKE Direct revenue grew 12% on a currency-neutral basis, with digital commerce sales up 34%.
5Greater China experienced robust revenue growth of 24% (20% currency-neutral), showcasing strong market expansion.
6The company repurchased approximately $1.36 billion of common stock during the quarter, reflecting a strong commitment to returning capital to shareholders.
7The effective tax rate increased to 14.0% due to the U.S. Tax Cuts and Jobs Act.

NIKE, Inc. Quarterly Report for Q1 Ended Aug 31, 2018

Summary

Financial Highlights

Key Highlights

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