Summary
NIKE, Inc. reported strong financial results for the third quarter and the first nine months of fiscal year 2019, demonstrating robust revenue growth and improved profitability. Total revenues increased by 7% to $9.6 billion for the third quarter and by 9% to $28.9 billion for the nine-month period, driven by broad-based growth across its geographic segments and product categories, particularly footwear and apparel. The company saw a significant rebound in net income, posting $1.1 billion for the third quarter compared to a net loss in the prior year, largely due to favorable tax impacts and revenue growth. Diluted earnings per share also saw a substantial increase. The company's strategic focus on its 'Consumer Direct Offense' and 'Triple Double' strategy appears to be yielding positive results, with a notable acceleration in NIKE Direct revenues, especially in digital commerce. Gross margin expansion was a key contributor to profitability, driven by higher average selling prices (ASP) and favorable currency movements, partially offset by increased product costs. The company also continued its commitment to returning capital to shareholders through robust share repurchase programs.
Financial Highlights
49 data points| Revenue | $9.61B |
| Cost of Revenue | $5.27B |
| Gross Profit | $4.34B |
| SG&A Expenses | $3.09B |
| Net Income | $1.10B |
| EPS (Basic) | $0.70 |
| EPS (Diluted) | $0.68 |
| Shares Outstanding (Basic) | 1.57B |
| Shares Outstanding (Diluted) | 1.61B |
Key Highlights
- 1Total revenues for the third quarter increased by 7% to $9.6 billion, with a 11% increase on a currency-neutral basis, indicating strong underlying business momentum.
- 2Net income for the third quarter was $1.1 billion, a significant turnaround from a net loss in the prior year's comparable period, driven by revenue growth, gross margin expansion, and a lower effective tax rate.
- 3Diluted earnings per common share rose to $0.68 for the third quarter, up from a loss per share in the prior year, reflecting improved profitability.
- 4NIKE Direct revenues showed strong growth, increasing 17% on a currency-neutral basis for the third quarter, with digital commerce sales up 36%.
- 5Gross margin improved by 130 basis points to 45.1% for the third quarter, primarily due to higher average selling prices (ASP) and favorable currency exchange rates.
- 6Greater China and Europe, Middle East & Africa (EMEA) segments demonstrated particularly strong revenue growth on a currency-neutral basis, up 24% and 12% respectively for the third quarter.
- 7The company continued its aggressive share repurchase program, completing a $12 billion program and initiating a new $15 billion program.