-
Fourth quarter revenues up 5 percent to $8.7 billion; 7 percent growth
on a currency-neutral basis*
-
Fourth quarter diluted earnings per share increased 22 percent to $0.60
-
Fiscal 2017 revenues up 6 percent to $34.4 billion; 8 percent growth
on a currency-neutral basis*
-
Fiscal 2017 diluted earnings per share increased 16 percent to $2.51
-
Inventories up 4 percent as of May 31, 2017
BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported fiscal 2017 financial results for
its fourth quarter and full year ended May 31, 2017. International
geographies and the Direct-to-Consumer (DTC) businesses globally led
strong revenue growth in the fourth quarter and full year.
Diluted earnings per share for the quarter rose 22 percent to $0.60
driven by global revenue growth, lower selling and administrative
expense, a lower tax rate and a lower average share count which were
slightly offset by lower gross margin.
Fiscal 2017 diluted earnings per share rose 16 percent to $2.51,
reflecting revenue growth of 6 percent, a lower tax rate and a lower
average share count which was slightly offset by lower gross margin.
“NIKE continues to create both near-term wins in today’s dynamic
environment and a lasting foundation for future growth,” said Mark
Parker, Chairman, President and CEO, NIKE, Inc. “Through our Consumer
Direct Offense, we’re putting even more firepower behind our greatest
opportunities in Fiscal 2018. It will be a big year for NIKE innovation
and we’ll bring those stories to life through deeper consumer
connections in our key cities around the world.”**
Fourth Quarter Income Statement Review
-
Revenues for NIKE, Inc. rose 5 percent to $8.7
billion, up 7 percent on a currency-neutral basis.
-
Revenues for the NIKE Brand were $8.1 billion, up 7 percent on a
currency-neutral basis driven by double-digit growth in Western
Europe, Greater China, and the Emerging Markets, and strong growth
in Sportswear and Running.
-
Revenues for Converse were $554 million, up 10 percent on a
currency-neutral basis, primarily driven by the market transition
in Italy and growth in DTC.
-
Gross margin declined 180 basis points to 44.1 percent
as higher average selling prices were more than offset by unfavorable
changes in foreign currency exchange rates and higher product costs.
-
Selling and administrative expense decreased 4 percent
to $2.7 billion. Demand creation expense was $789 million, down 10
percent, as fiscal 2017 spend was weighted towards the beginning of
the year due to significant investments around the Olympics and the
European Football Championship. Operating overhead expense decreased 1
percent to $1.9 billion, as continued investments in DTC were offset
by administrative cost efficiencies.
-
Other income, net was $28 million comprised primarily of
net foreign currency exchange hedge gains.
-
The effective tax rate was 13.7 percent, compared to
21.2 percent for the same period last year, primarily due to an
increase in the proportion of earnings from operations outside of the
United States, which are generally subject to a lower tax rate.
-
Net income increased 19 percent to $1.0 billion
primarily due to global revenue growth, lower selling and
administrative expense and a lower tax rate which were slightly offset
by a gross margin decline, while diluted earnings per share
increased 22 percent to $0.60 reflecting a nearly 3 percent decline in
the weighted average diluted common shares outstanding.
Fiscal 2017 Income Statement Review
-
Revenues for NIKE, Inc. rose 6 percent to $34.4
billion, up 8 percent on a currency-neutral basis.
-
Also, on a currency-neutral basis:
-
Revenues for the NIKE Brand were $32.2 billion, up 8 percent.
-
NIKE Brand sales to wholesale customers increased 5 percent while
DTC revenues grew to $9.1 billion, up 18 percent, driven by a 30
percent increase in digital commerce sales, the addition of new
stores and 7 percent growth in comparable store sales. As of May
31, 2017, the NIKE Brand had 985 DTC stores in operation as
compared to 919 a year ago.
-
NIKE Brand revenue growth was driven by growth in every geography
as well as key categories including Sportswear, Running and the
Jordan Brand.
-
Revenues for Converse were $2.0 billion, up 6 percent, driven by
growth in the United States and Europe due to the market
transition in Italy.
-
Gross margin declined 160 basis points to 44.6 percent
as higher average selling prices were more than offset by the negative
impact of changes in foreign currency exchange rates and higher
product costs.
-
Selling and administrative expense increased 1 percent
to $10.6 billion. Demand creation expense was $3.3 billion, up 2
percent, primarily due to higher sports marketing costs and
significant investments around the Olympics and the European Football
Championship in the first half of the fiscal year. Operating overhead
expense remained flat at $7.2 billion, as continued investments in DTC
were offset by administrative cost efficiencies and lower variable
compensation.
-
Other income, net was $196 million comprised primarily
of net foreign currency exchange hedge gains.
-
The effective tax rate was 13.2 percent, compared to
18.7 percent for the same period last year primarily due to a one-time
benefit in the first quarter of the fiscal year related to the
resolution with the U.S. Internal Revenue Service of a foreign tax
credit matter, and a decrease in foreign earnings taxed in the U.S.
-
Net income increased 13 percent to $4.2 billion
reflecting strong global revenue growth, selling and administrative
expense leverage and a lower tax rate which were slightly offset by a
decline in gross margin. Diluted earnings per share increased 16
percent to $2.51, reflecting growth in net income and the additional
benefit of a decline in the weighted average diluted common shares
outstanding.
May 31, 2017 Balance Sheet Review
-
Inventories for NIKE, Inc. were $5.1 billion, up 4
percent from May 31, 2016, as a 3 percent decrease in NIKE Brand
wholesale unit inventories was more than offset by increases in
average product cost per unit and growth in our DTC businesses.
-
Cash and short-term investments were $6.2 billion, $722
million higher than last year as growth in net income, proceeds from
the issuance of debt in the second quarter of fiscal 2017 and proceeds
from employee exercises of stock options were partially offset by
share repurchases, dividends, and investments in infrastructure and
working capital.
Share Repurchases
During the fourth quarter, NIKE, Inc. repurchased a total of 14.9
million shares for approximately $820 million as part of the four-year,
$12 billion program approved by the Board of Directors in November 2015.
As of May 31, 2017, a total of 79.8 million shares had been repurchased
under this program for approximately $4.4 billion.
Conference Call
NIKE, Inc. management will host a conference call beginning at
approximately 2:00 p.m. PT on June 29, 2017, to review fiscal fourth
quarter and full year results. The conference call will be broadcast
live over the Internet and can be accessed at http://investors.NIKE.com.
For those unable to listen to the live broadcast, an archived version
will be available at the same location through 9:00 p.m. PT, July 6,
2017.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world’s leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly-owned NIKE, Inc. subsidiary brands include
Converse, which designs, markets and distributes athletic lifestyle
footwear, apparel and accessories; and Hurley, which designs, markets
and distributes surf and youth lifestyle footwear, apparel and
accessories. For more information, NIKE, Inc.’s earnings releases and
other financial information are available on the Internet at http://investors.NIKE.com
and individuals can follow @NIKE.
|
|
|
|
*
|
|
|
See additional information in the accompanying Divisional Revenues
table regarding this non-GAAP financial measure.
|
|
|
|
|
**
|
|
|
The marked paragraph contains forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially. These risks and uncertainties are detailed from
time to time in reports filed by NIKE with the Securities and
Exchange Commission (SEC), including Forms 8-K, 10-Q, and 10-K.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
|
TWELVE MONTHS ENDED
|
|
%
|
(Dollars in millions, except per share data)
|
|
|
5/31/2017
|
|
|
|
5/31/2016
|
|
|
Change
|
|
|
|
5/31/2017
|
|
|
|
5/31/2016
|
|
|
Change
|
Revenues
|
|
$
|
8,677
|
|
|
$
|
8,244
|
|
|
5
|
%
|
|
|
$
|
34,350
|
|
|
$
|
32,376
|
|
|
6
|
%
|
Cost of sales
|
|
|
4,854
|
|
|
|
4,458
|
|
|
9
|
%
|
|
|
|
19,038
|
|
|
|
17,405
|
|
|
9
|
%
|
Gross profit
|
|
|
3,823
|
|
|
|
3,786
|
|
|
1
|
%
|
|
|
|
15,312
|
|
|
|
14,971
|
|
|
2
|
%
|
Gross margin
|
|
|
44.1
|
%
|
|
|
45.9
|
%
|
|
|
|
|
|
44.6
|
%
|
|
|
46.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
|
789
|
|
|
|
873
|
|
|
-10
|
%
|
|
|
|
3,341
|
|
|
|
3,278
|
|
|
2
|
%
|
Operating overhead expense
|
|
|
1,876
|
|
|
|
1,893
|
|
|
-1
|
%
|
|
|
|
7,222
|
|
|
|
7,191
|
|
|
0
|
%
|
Total selling and administrative expense
|
|
|
2,665
|
|
|
|
2,766
|
|
|
-4
|
%
|
|
|
|
10,563
|
|
|
|
10,469
|
|
|
1
|
%
|
% of revenues
|
|
|
30.7
|
%
|
|
|
33.6
|
%
|
|
|
|
|
|
30.8
|
%
|
|
|
32.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
18
|
|
|
|
5
|
|
|
—
|
|
|
|
|
59
|
|
|
|
19
|
|
|
—
|
|
Other (income) expense, net
|
|
|
(28
|
)
|
|
|
(58
|
)
|
|
—
|
|
|
|
|
(196
|
)
|
|
|
(140
|
)
|
|
—
|
|
Income before income taxes
|
|
|
1,168
|
|
|
|
1,073
|
|
|
9
|
%
|
|
|
|
4,886
|
|
|
|
4,623
|
|
|
6
|
%
|
Income tax expense
|
|
|
160
|
|
|
|
227
|
|
|
-30
|
%
|
|
|
|
646
|
|
|
|
863
|
|
|
-25
|
%
|
Effective tax rate
|
|
|
13.7
|
%
|
|
|
21.2
|
%
|
|
|
|
|
|
13.2
|
%
|
|
|
18.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
1,008
|
|
|
$
|
846
|
|
|
19
|
%
|
|
|
$
|
4,240
|
|
|
$
|
3,760
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.61
|
|
|
$
|
0.50
|
|
|
22
|
%
|
|
|
$
|
2.56
|
|
|
$
|
2.21
|
|
|
16
|
%
|
Diluted
|
|
$
|
0.60
|
|
|
$
|
0.49
|
|
|
22
|
%
|
|
|
$
|
2.51
|
|
|
$
|
2.16
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,646.9
|
|
|
|
1,682.4
|
|
|
|
|
|
|
1,657.8
|
|
|
|
1,697.9
|
|
|
|
Diluted
|
|
|
1,678.6
|
|
|
|
1,723.1
|
|
|
|
|
|
|
1,692.0
|
|
|
|
1,742.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.18
|
|
|
$
|
0.16
|
|
|
|
|
|
$
|
0.70
|
|
|
$
|
0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
May 31,
|
|
|
|
(Dollars in millions)
|
|
2017
|
|
|
2016
|
|
|
% Change
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
3,808
|
|
|
$
|
3,138
|
|
|
21%
|
Short-term investments
|
|
|
2,371
|
|
|
|
2,319
|
|
|
2%
|
Accounts receivable, net
|
|
|
3,677
|
|
|
|
3,241
|
|
|
13%
|
Inventories
|
|
|
5,055
|
|
|
|
4,838
|
|
|
4%
|
Prepaid expenses and other current assets
|
|
|
1,150
|
|
|
|
1,489
|
|
|
-23%
|
Total current assets
|
|
|
16,061
|
|
|
|
15,025
|
|
|
7%
|
Property, plant and equipment, net
|
|
|
3,989
|
|
|
|
3,520
|
|
|
13%
|
Identifiable intangible assets, net
|
|
|
283
|
|
|
|
281
|
|
|
1%
|
Goodwill
|
|
|
139
|
|
|
|
131
|
|
|
6%
|
Deferred income taxes and other assets
|
|
|
2,787
|
|
|
|
2,422
|
|
|
15%
|
TOTAL ASSETS
|
|
$
|
23,259
|
|
|
$
|
21,379
|
|
|
9%
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
6
|
|
|
$
|
44
|
|
|
-86%
|
Notes payable
|
|
|
325
|
|
|
|
1
|
|
|
—
|
Accounts payable
|
|
|
2,048
|
|
|
|
2,191
|
|
|
-7%
|
Accrued liabilities
|
|
|
3,011
|
|
|
|
3,037
|
|
|
-1%
|
Income taxes payable
|
|
|
84
|
|
|
|
85
|
|
|
-1%
|
Total current liabilities
|
|
|
5,474
|
|
|
|
5,358
|
|
|
2%
|
Long-term debt
|
|
|
3,471
|
|
|
|
1,993
|
|
|
74%
|
Deferred income taxes and other liabilities
|
|
|
1,907
|
|
|
|
1,770
|
|
|
8%
|
Redeemable preferred stock
|
|
|
—
|
|
|
|
—
|
|
|
—
|
Shareholders' equity
|
|
|
12,407
|
|
|
|
12,258
|
|
|
1%
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
23,259
|
|
|
$
|
21,379
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
DIVISIONAL REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
Currency
|
|
|
TWELVE MONTHS ENDED
|
|
%
|
|
Currency
|
(Dollars in millions)
|
|
|
5/31/2017
|
|
|
|
5/31/2016
|
|
Change
|
|
Changes1
|
|
|
|
5/31/2017
|
|
|
5/31/2016
|
|
|
Change
|
|
Changes1
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
2,457
|
|
|
$
|
2,367
|
|
4
|
%
|
|
4
|
%
|
|
|
$
|
9,684
|
|
$
|
9,299
|
|
|
4
|
%
|
|
4
|
%
|
Apparel
|
|
|
1,142
|
|
|
|
1,163
|
|
-2
|
%
|
|
-2
|
%
|
|
|
|
4,886
|
|
|
4,746
|
|
|
3
|
%
|
|
3
|
%
|
Equipment
|
|
|
154
|
|
|
|
205
|
|
-25
|
%
|
|
-25
|
%
|
|
|
|
646
|
|
|
719
|
|
|
-10
|
%
|
|
-10
|
%
|
Total
|
|
|
3,753
|
|
|
|
3,735
|
|
0
|
%
|
|
1
|
%
|
|
|
|
15,216
|
|
|
14,764
|
|
|
3
|
%
|
|
3
|
%
|
Western Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
1,066
|
|
|
|
1,027
|
|
4
|
%
|
|
11
|
%
|
|
|
|
4,068
|
|
|
3,985
|
|
|
2
|
%
|
|
7
|
%
|
Apparel
|
|
|
438
|
|
|
|
411
|
|
7
|
%
|
|
15
|
%
|
|
|
|
1,868
|
|
|
1,628
|
|
|
15
|
%
|
|
21
|
%
|
Equipment
|
|
|
60
|
|
|
|
64
|
|
-6
|
%
|
|
1
|
%
|
|
|
|
275
|
|
|
271
|
|
|
1
|
%
|
|
7
|
%
|
Total
|
|
|
1,564
|
|
|
|
1,502
|
|
4
|
%
|
|
12
|
%
|
|
|
|
6,211
|
|
|
5,884
|
|
|
6
|
%
|
|
11
|
%
|
Central & Eastern Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
233
|
|
|
|
224
|
|
4
|
%
|
|
9
|
%
|
|
|
|
927
|
|
|
882
|
|
|
5
|
%
|
|
9
|
%
|
Apparel
|
|
|
103
|
|
|
|
102
|
|
1
|
%
|
|
2
|
%
|
|
|
|
471
|
|
|
463
|
|
|
2
|
%
|
|
4
|
%
|
Equipment
|
|
|
21
|
|
|
|
19
|
|
11
|
%
|
|
11
|
%
|
|
|
|
89
|
|
|
86
|
|
|
3
|
%
|
|
6
|
%
|
Total
|
|
|
357
|
|
|
|
345
|
|
3
|
%
|
|
6
|
%
|
|
|
|
1,487
|
|
|
1,431
|
|
|
4
|
%
|
|
7
|
%
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
765
|
|
|
|
681
|
|
12
|
%
|
|
18
|
%
|
|
|
|
2,920
|
|
|
2,599
|
|
|
12
|
%
|
|
18
|
%
|
Apparel
|
|
|
293
|
|
|
|
268
|
|
9
|
%
|
|
14
|
%
|
|
|
|
1,188
|
|
|
1,055
|
|
|
13
|
%
|
|
18
|
%
|
Equipment
|
|
|
29
|
|
|
|
30
|
|
-3
|
%
|
|
-3
|
%
|
|
|
|
129
|
|
|
131
|
|
|
-2
|
%
|
|
3
|
%
|
Total
|
|
|
1,087
|
|
|
|
979
|
|
11
|
%
|
|
16
|
%
|
|
|
|
4,237
|
|
|
3,785
|
|
|
12
|
%
|
|
17
|
%
|
Japan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
196
|
|
|
|
187
|
|
5
|
%
|
|
4
|
%
|
|
|
|
666
|
|
|
570
|
|
|
17
|
%
|
|
7
|
%
|
Apparel
|
|
|
78
|
|
|
|
70
|
|
11
|
%
|
|
11
|
%
|
|
|
|
275
|
|
|
228
|
|
|
21
|
%
|
|
10
|
%
|
Equipment
|
|
|
21
|
|
|
|
23
|
|
-9
|
%
|
|
-10
|
%
|
|
|
|
73
|
|
|
71
|
|
|
3
|
%
|
|
-6
|
%
|
Total
|
|
|
295
|
|
|
|
280
|
|
5
|
%
|
|
5
|
%
|
|
|
|
1,014
|
|
|
869
|
|
|
17
|
%
|
|
7
|
%
|
Emerging Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
756
|
|
|
|
596
|
|
27
|
%
|
|
24
|
%
|
|
|
|
2,816
|
|
|
2,536
|
|
|
11
|
%
|
|
17
|
%
|
Apparel
|
|
|
247
|
|
|
|
226
|
|
9
|
%
|
|
6
|
%
|
|
|
|
966
|
|
|
947
|
|
|
2
|
%
|
|
8
|
%
|
Equipment
|
|
|
50
|
|
|
|
50
|
|
0
|
%
|
|
-3
|
%
|
|
|
|
213
|
|
|
218
|
|
|
-2
|
%
|
|
2
|
%
|
Total
|
|
|
1,053
|
|
|
|
872
|
|
21
|
%
|
|
18
|
%
|
|
|
|
3,995
|
|
|
3,701
|
|
|
8
|
%
|
|
14
|
%
|
Global Brand Divisions2
|
|
|
18
|
|
|
|
12
|
|
50
|
%
|
|
68
|
%
|
|
|
|
73
|
|
|
73
|
|
|
0
|
%
|
|
2
|
%
|
TOTAL NIKE BRAND
|
|
|
8,127
|
|
|
|
7,725
|
|
5
|
%
|
|
7
|
%
|
|
|
|
32,233
|
|
|
30,507
|
|
|
6
|
%
|
|
8
|
%
|
Converse
|
|
|
554
|
|
|
|
513
|
|
8
|
%
|
|
10
|
%
|
|
|
|
2,042
|
|
|
1,955
|
|
|
4
|
%
|
|
6
|
%
|
Corporate3
|
|
|
(4
|
)
|
|
|
6
|
|
—
|
|
|
—
|
|
|
|
|
75
|
|
|
(86
|
)
|
|
—
|
|
|
—
|
|
TOTAL NIKE, INC. REVENUES
|
|
$
|
8,677
|
|
|
$
|
8,244
|
|
5
|
%
|
|
7
|
%
|
|
|
$
|
34,350
|
|
$
|
32,376
|
|
|
6
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NIKE BRAND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
5,473
|
|
|
$
|
5,082
|
|
8
|
%
|
|
10
|
%
|
|
|
$
|
21,081
|
|
$
|
19,871
|
|
|
6
|
%
|
|
8
|
%
|
Apparel
|
|
|
2,301
|
|
|
|
2,240
|
|
3
|
%
|
|
4
|
%
|
|
|
|
9,654
|
|
|
9,067
|
|
|
6
|
%
|
|
9
|
%
|
Equipment
|
|
|
335
|
|
|
|
391
|
|
-14
|
%
|
|
-14
|
%
|
|
|
|
1,425
|
|
|
1,496
|
|
|
-5
|
%
|
|
-3
|
%
|
Global Brand Divisions2
|
|
|
18
|
|
|
|
12
|
|
50
|
%
|
|
68
|
%
|
|
|
|
73
|
|
|
73
|
|
|
0
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Fiscal 2017 results have been restated using fiscal
2016 exchange rates for the comparative period to enhance the
visibility of the underlying business trends excluding the impact
of translation arising from foreign currency exchange rate
fluctuations, which is considered a non-GAAP financial measure.
|
|
|
2 Global Brand Divisions revenues are primarily
attributable to NIKE Brand licensing businesses that are not part
of a geographic operating segment.
|
|
3 Corporate revenues primarily consist of foreign
currency hedge gains and losses related to revenues generated by
entities within the NIKE Brand geographic operating segments and
Converse but managed through our central foreign exchange risk
management program.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
SUPPLEMENTAL NIKE BRAND REVENUE DETAILS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
TWELVE MONTHS ENDED
|
|
|
|
|
|
Currency
|
(Dollars in millions)
|
|
5/31/2017
|
|
|
5/31/20161
|
|
|
% Change
|
|
|
Changes2
|
NIKE Brand Revenues by:
|
|
|
|
|
|
|
|
|
|
|
|
Sales to Wholesale Customers
|
|
$
|
23,078
|
|
|
$
|
22,577
|
|
|
2%
|
|
|
5%
|
Sales Direct to Consumer
|
|
|
9,082
|
|
|
|
7,857
|
|
|
16%
|
|
|
18%
|
Global Brand Divisions3
|
|
|
73
|
|
|
|
73
|
|
|
0%
|
|
|
2%
|
TOTAL NIKE BRAND REVENUES
|
|
$
|
32,233
|
|
|
$
|
30,507
|
|
|
6%
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE Brand Revenues on a Wholesale Equivalent Basis:4
|
|
|
|
|
|
|
|
|
|
|
|
Sales to Wholesale Customers
|
|
$
|
23,078
|
|
|
$
|
22,577
|
|
|
2%
|
|
|
5%
|
Sales from our Wholesale Operations to Direct to Consumer Operations
|
|
|
5,616
|
|
|
|
4,672
|
|
|
20%
|
|
|
22%
|
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES
|
|
$
|
28,694
|
|
|
$
|
27,249
|
|
|
5%
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE Brand Wholesale Equivalent Revenues by:4
|
|
|
|
|
|
|
|
|
|
|
|
Men's
|
|
$
|
16,041
|
|
|
$
|
15,410
|
|
|
4%
|
|
|
6%
|
Women’s
|
|
|
6,644
|
|
|
|
6,296
|
|
|
6%
|
|
|
8%
|
Young Athletes'
|
|
|
4,838
|
|
|
|
4,560
|
|
|
6%
|
|
|
8%
|
Others5
|
|
|
1,171
|
|
|
|
983
|
|
|
19%
|
|
|
21%
|
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES
|
|
$
|
28,694
|
|
|
$
|
27,249
|
|
|
5%
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE Brand Wholesale Equivalent Revenues by:4
|
|
|
|
|
|
|
|
|
|
|
|
Running
|
|
$
|
5,278
|
|
|
$
|
5,017
|
|
|
5%
|
|
|
8%
|
NIKE Basketball
|
|
|
1,292
|
|
|
|
1,378
|
|
|
-6%
|
|
|
-5%
|
Jordan Brand
|
|
|
3,099
|
|
|
|
2,753
|
|
|
13%
|
|
|
13%
|
Football (Soccer)
|
|
|
1,987
|
|
|
|
2,143
|
|
|
-7%
|
|
|
-4%
|
Men’s Training
|
|
|
2,617
|
|
|
|
2,611
|
|
|
0%
|
|
|
1%
|
Women’s Training
|
|
|
1,265
|
|
|
|
1,344
|
|
|
-6%
|
|
|
-4%
|
Action Sports
|
|
|
596
|
|
|
|
655
|
|
|
-9%
|
|
|
-7%
|
Sportswear
|
|
|
8,587
|
|
|
|
7,513
|
|
|
14%
|
|
|
17%
|
Golf
|
|
|
579
|
|
|
|
706
|
|
|
-18%
|
|
|
-18%
|
Others6
|
|
|
3,394
|
|
|
|
3,129
|
|
|
8%
|
|
|
11%
|
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES
|
|
$
|
28,694
|
|
|
$
|
27,249
|
|
|
5%
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Certain prior year amounts have been reclassified to
conform to fiscal 2017 presentation. These changes had no impact
on previously reported results of operations or shareholders'
equity.
|
|
2 Fiscal 2017 results have been restated using fiscal
2016 exchange rates for the comparative period to enhance the
visibility of the underlying business trends excluding the impact
of translation arising from foreign currency exchange rate
fluctuations, which is considered a non-GAAP financial measure.
|
|
3 Global Brand Divisions revenues are primarily
attributable to NIKE Brand licensing businesses that are not part
of a geographic operating segment.
|
|
4 References to NIKE Brand wholesale equivalent
revenues, which are considered non-GAAP financial measures, are
intended to provide context as to the total size of our NIKE Brand
market footprint if we had no Direct to Consumer operations. NIKE
Brand wholesale equivalent revenues consist of 1) sales to
external wholesale customers and 2) internal sales from our
wholesale operations to our Direct to Consumer operations which
are charged at prices that are comparable to prices charged to
external wholesale customers.
|
|
5 Others include all unisex products, equipment and
other products not allocated to Men's, Women's and Young
Athletes', as well as certain adjustments that are not allocated
to products designated by gender or age.
|
|
6 Others include all other categories and certain
adjustments that are not allocated at the category level.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
EARNINGS BEFORE INTEREST AND TAXES1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
TWELVE MONTHS ENDED
|
|
|
%
|
(Dollars in millions)
|
|
|
5/31/2017
|
|
|
|
|
5/31/2016
|
|
|
|
Change
|
|
|
|
5/31/2017
|
|
|
|
|
5/31/2016
|
|
|
|
Change
|
North America
|
|
$
|
979
|
|
|
|
$
|
936
|
|
|
|
5
|
%
|
|
|
$
|
3,875
|
|
|
|
$
|
3,763
|
|
|
|
3
|
%
|
Western Europe
|
|
|
285
|
|
|
|
|
308
|
|
|
|
-7
|
%
|
|
|
|
1,203
|
|
|
|
|
1,434
|
|
|
|
-16
|
%
|
Central & Eastern Europe
|
|
|
48
|
|
|
|
|
46
|
|
|
|
4
|
%
|
|
|
|
244
|
|
|
|
|
289
|
|
|
|
-16
|
%
|
Greater China
|
|
|
380
|
|
|
|
|
357
|
|
|
|
6
|
%
|
|
|
|
1,507
|
|
|
|
|
1,372
|
|
|
|
10
|
%
|
Japan
|
|
|
77
|
|
|
|
|
55
|
|
|
|
40
|
%
|
|
|
|
224
|
|
|
|
|
174
|
|
|
|
29
|
%
|
Emerging Markets
|
|
|
215
|
|
|
|
|
191
|
|
|
|
13
|
%
|
|
|
|
816
|
|
|
|
|
892
|
|
|
|
-9
|
%
|
Global Brand Divisions2
|
|
|
(689
|
)
|
|
|
|
(722
|
)
|
|
|
5
|
%
|
|
|
|
(2,677
|
)
|
|
|
|
(2,596
|
)
|
|
|
-3
|
%
|
TOTAL NIKE BRAND
|
|
|
1,295
|
|
|
|
|
1,171
|
|
|
|
11
|
%
|
|
|
|
5,192
|
|
|
|
|
5,328
|
|
|
|
-3
|
%
|
Converse
|
|
|
137
|
|
|
|
|
128
|
|
|
|
7
|
%
|
|
|
|
477
|
|
|
|
|
487
|
|
|
|
-2
|
%
|
Corporate3
|
|
|
(246
|
)
|
|
|
|
(221
|
)
|
|
|
-11
|
%
|
|
|
|
(724
|
)
|
|
|
|
(1,173
|
)
|
|
|
38
|
%
|
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES
|
|
|
1,186
|
|
|
|
|
1,078
|
|
|
|
10
|
%
|
|
|
|
4,945
|
|
|
|
|
4,642
|
|
|
|
7
|
%
|
Interest expense (income), net
|
|
|
18
|
|
|
|
|
5
|
|
|
|
—
|
|
|
|
|
59
|
|
|
|
|
19
|
|
|
|
—
|
|
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES
|
|
$
|
1,168
|
|
|
|
$
|
1,073
|
|
|
|
9
|
%
|
|
|
$
|
4,886
|
|
|
|
$
|
4,623
|
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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1 The Company evaluates performance of individual
operating segments based on earnings before interest and taxes
(commonly referred to as “EBIT”), which represents net income before
interest expense (income), net and income tax expense.
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|
|
2 Global Brand Divisions primarily represent demand
creation, operating overhead and product creation and design
expenses that are centrally managed for the NIKE Brand. Revenues
for Global Brand Divisions are primarily attributable to NIKE
Brand licensing businesses that are not part of a geographic
operating segment.
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|
3 Corporate consists largely of unallocated general and
administrative expenses, including expenses associated with
centrally managed departments; depreciation and amortization
related to the Company’s corporate headquarters; unallocated
insurance, benefit and compensation programs, including
stock-based compensation; and certain foreign currency gains and
losses, including certain hedge gains and losses.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170629006278/en/
Source: NIKE, Inc.