Summary
NIKE, Inc. reported strong results for the first quarter of fiscal year 2020, with revenues increasing 7% to $10.7 billion. On a currency-neutral basis, revenues grew 10%, demonstrating robust underlying business momentum. Net income saw a significant 25% increase to $1.37 billion, translating to diluted earnings per share of $0.86, up 28% from the prior year. This performance was driven by broad-based growth across all NIKE Brand geographies and Converse, with particular strength in Greater China and Europe, Middle East & Africa. The company also achieved a substantial 150 basis point improvement in gross margin to 45.7%, attributed to higher full-price average selling prices (ASPs), growth in the higher-margin NIKE Direct business, and improved Converse margins. While selling and administrative expenses increased due to investments in digital transformation and innovation, the overall revenue and gross margin expansion led to a healthy 23% increase in income before income taxes. NIKE continues to execute its 'Consumer Direct Offense' strategy, focusing on innovation, speed to market, and direct consumer connections, which is clearly reflected in the strong digital commerce sales growth and increasing proportion of NIKE Direct revenue.
Financial Highlights
48 data points| Revenue | $10.66B |
| Cost of Revenue | $5.79B |
| Gross Profit | $4.87B |
| SG&A Expenses | $3.33B |
| Net Income | $1.37B |
| EPS (Basic) | $0.87 |
| EPS (Diluted) | $0.86 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.60B |
Key Highlights
- 1Total revenues increased 7% to $10.7 billion, with a 10% increase on a currency-neutral basis, indicating strong organic growth.
- 2Net income grew 25% to $1.37 billion, and diluted earnings per share rose 28% to $0.86.
- 3Gross margin improved significantly by 150 basis points to 45.7%, driven by higher full-price ASPs and growth in the higher-margin NIKE Direct channel.
- 4Greater China and Europe, Middle East & Africa (EMEA) demonstrated particularly strong revenue growth (27% and 12% currency-neutral, respectively), showcasing international market strength.
- 5NIKE Direct revenue increased 17% on a currency-neutral basis, with digital commerce sales up 42%, highlighting the success of the company's digital strategy.
- 6The company repurchased approximately $995 million of common stock during the quarter, demonstrating a commitment to returning capital to shareholders.