New $15 Billion Share Repurchase Program Announced
BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal
2018 fourth quarter and full year ended May 31, 2018.
Fourth quarter revenue increased 13 percent to $9.8 billion driven by
strong double-digit revenue growth in international markets and NIKE
Direct globally, and a return to growth in North America. Diluted
earnings per share for the fourth quarter rose 15 percent to $0.69,
primarily due to strong revenue growth, gross margin expansion, a lower
tax rate and a lower average share count, which were partially offset by
higher selling and administrative expense.
“Our new innovation is winning with consumers, driving significant
momentum in our international geographies and a return to growth in
North America,” said Mark Parker, Chairman, President and CEO, NIKE,
Inc. “Fueled by a complete digital transformation of our company
end-to-end, this year set the foundation for NIKE’s next wave of
long-term, sustainable growth and profitability.”*
The Company also announced that its Board of Directors has authorized a
new four-year, $15 billion program to repurchase shares of NIKE’s Class
B Common Stock. The Company anticipates that the current $12 billion
share repurchase program will be completed within fiscal 2019, and the
new program will commence upon the completion of the current program.*
Fourth Quarter Income Statement Review
-
Revenues
for NIKE, Inc. increased 13 percent to
$9.8 billion, up 8 percent on a currency-neutral basis.**
-
Revenues for the NIKE Brand were $9.3 billion, up 9 percent on a
currency-neutral basis, driven by double-digit increases in NIKE
Direct, international geographies, Sportswear, Global Football and
growth in North America.
-
Revenues for Converse were $512 million, down 14 percent on a
currency-neutral basis, as growth in Asia was more than offset by
declines in other territories.
-
Gross margin
increased 60 basis points to 44.7 percent
due primarily to higher average selling prices, margin expansion in
NIKE Direct and favorable full-price sales mix.
-
Selling and administrative expense
increased 17 percent
to $3.1 billion. Demand creation expense was $983 million, up 25
percent, primarily driven by sports marketing investments, new product
launch and brand campaigns, and unfavorable changes in foreign
currency exchange rates. Operating overhead expense increased 14
percent to $2.1 billion, largely due to investments in global
operations and capabilities to drive the Consumer Direct Offense, and,
to a lesser extent, unfavorable changes in foreign currency exchange
rates.
-
The effective tax rate was 6.4 percent, compared to 13.7
percent for the same period last year, due to several discrete impacts
within the quarter, including adjustments to the provisional charges
related to the enactment of the Tax Cuts and Jobs Act (the “Tax Act”).
-
Net income
increased 13 percent to $1.1 billion
primarily due to strong global revenue growth, gross margin expansion
and a lower tax rate, which were partially offset by higher selling
and administrative expense, while diluted earnings per share increased
15 percent to $0.69 reflecting a 2 percent decline in the weighted
average diluted common shares outstanding.
Fiscal 2018 Income Statement Review
-
Revenues
for NIKE, Inc. rose 6 percent to $36.4
billion, up 4 percent on a currency-neutral basis.
-
Also, on a currency-neutral basis:
-
Revenues for the NIKE Brand were $34.5 billion, up 5 percent.
-
NIKE Brand sales to wholesale customers increased 2 percent while
NIKE Direct revenues grew 12 percent to $10.4 billion, driven by a
25 percent increase in digital commerce sales, the addition of new
stores and 4 percent growth in comparable store sales.
-
NIKE Brand revenue growth was driven by continued strength in
international markets and NIKE Direct with growth across footwear
and apparel and key categories including Sportswear and NIKE
Basketball.
-
Revenues for Converse were $1.9 billion, down 11 percent, as
growth in Asia was more than offset by declines primarily in North
America.
-
Gross margin
decreased 80 basis points to 43.8 percent
driven by 90 basis points of unfavorable changes in foreign currency
exchange rates.
-
Selling and administrative expense
increased 9 percent
to $11.5 billion. Demand creation expense was $3.6 billion, up 7
percent, primarily due to sports marketing investments. Operating
overhead expense rose 10 percent to $7.9 billion, largely due to
investments to activate the Consumer Direct Offense including product
innovation and digital and speed capabilities.
-
The effective tax rate was 55.3 percent, compared to
13.2 percent in fiscal 2017 due to significant charges related to the
enactment of the Tax Act.
-
Net income
decreased 54 percent to $1.9 billion
primarily related to the impact of the Tax Act, which offset strong
revenue growth. Diluted earnings per share decreased 53 percent to
$1.17, which includes a decline in the weighted average diluted common
shares outstanding.
May 31, 2018 Balance Sheet Review
-
Inventories
for NIKE, Inc. were $5.3 billion, up 4
percent from May 31, 2017, primarily driven by strong demand globally.
-
Cash and equivalents and short-term investments
were
$5.2 billion, $934 million lower than last year as share repurchases,
dividends and investments in infrastructure more than offset net
income and proceeds from employee exercises of stock options.
Share Repurchases
During the fourth quarter, NIKE, Inc. repurchased a total of 23.1
million shares for approximately $1.6 billion as part of the four-year,
$12 billion program approved by the Board of Directors in November 2015.
As of May 31, 2018, a total of 149.4 million shares had been repurchased
under this program for approximately $8.7 billion. The Company’s new $15
billion program will commence upon the completion of the existing
program which is expected to be completed within fiscal 2019.
Repurchases under the Company’s new program will be made in open market
or privately negotiated transactions in compliance with Securities and
Exchange Commission Rule 10b-18, subject to market conditions,
applicable legal requirements and other relevant factors. The new share
repurchase program does not obligate the Company to acquire any
particular amount of common stock, and it may be suspended at any time
at the Company’s discretion.
Conference Call
NIKE, Inc. management will host a conference call beginning at
approximately 2:00 p.m. PT on June 28, 2018, to review fiscal fourth
quarter and full year results. The conference call will be broadcast
live via webcast 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 12,
2018.
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.
Individuals can also visit http://news.nike.com
and follow @NIKE.
*
|
|
|
|
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.
|
|
|
|
|
|
**
|
|
|
|
See additional information in the accompanying Divisional
Revenues table regarding this non-GAAP financial measure.
|
|
|
|
|
|
(Tables Follow)
|
NIKE, Inc.
|
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
TWELVE MONTHS ENDED
|
|
|
%
|
(Dollars in millions, except per share data)
|
|
|
|
5/31/2018
|
|
|
5/31/2017
|
|
|
|
Change
|
|
|
5/31/2018
|
|
|
5/31/2017
|
|
|
Change
|
Revenues
|
|
|
|
$
|
9,789
|
|
|
|
$
|
8,677
|
|
|
|
13
|
%
|
|
|
$
|
36,397
|
|
|
|
$
|
34,350
|
|
|
|
6
|
%
|
Cost of sales
|
|
|
|
|
5,411
|
|
|
|
|
4,854
|
|
|
|
11
|
%
|
|
|
|
20,441
|
|
|
|
|
19,038
|
|
|
|
7
|
%
|
Gross profit
|
|
|
|
|
4,378
|
|
|
|
|
3,823
|
|
|
|
15
|
%
|
|
|
|
15,956
|
|
|
|
|
15,312
|
|
|
|
4
|
%
|
Gross margin
|
|
|
|
|
44.7
|
%
|
|
|
|
44.1
|
%
|
|
|
|
|
|
|
43.8
|
%
|
|
|
|
44.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
|
|
|
983
|
|
|
|
|
789
|
|
|
|
25
|
%
|
|
|
|
3,577
|
|
|
|
|
3,341
|
|
|
|
7
|
%
|
Operating overhead expense
|
|
|
|
|
2,137
|
|
|
|
|
1,876
|
|
|
|
14
|
%
|
|
|
|
7,934
|
|
|
|
|
7,222
|
|
|
|
10
|
%
|
Total selling and administrative expense
|
|
|
|
|
3,120
|
|
|
|
|
2,665
|
|
|
|
17
|
%
|
|
|
|
11,511
|
|
|
|
|
10,563
|
|
|
|
9
|
%
|
% of revenues
|
|
|
|
|
31.9
|
%
|
|
|
|
30.7
|
%
|
|
|
|
|
|
|
31.6
|
%
|
|
|
|
30.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
|
|
12
|
|
|
|
|
18
|
|
|
|
—
|
|
|
|
|
54
|
|
|
|
|
59
|
|
|
|
—
|
|
Other expense (income), net
|
|
|
|
|
31
|
|
|
|
|
(28
|
)
|
|
|
—
|
|
|
|
|
66
|
|
|
|
|
(196
|
)
|
|
|
—
|
|
Income before income taxes
|
|
|
|
|
1,215
|
|
|
|
|
1,168
|
|
|
|
4
|
%
|
|
|
|
4,325
|
|
|
|
|
4,886
|
|
|
|
-11
|
%
|
Income tax expense
|
|
|
|
|
78
|
|
|
|
|
160
|
|
|
|
-51
|
%
|
|
|
|
2,392
|
|
|
|
|
646
|
|
|
|
270
|
%
|
Effective tax rate
|
|
|
|
|
6.4
|
%
|
|
|
|
13.7
|
%
|
|
|
|
|
|
|
55.3
|
%
|
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
|
$
|
1,137
|
|
|
|
$
|
1,008
|
|
|
|
13
|
%
|
|
|
$
|
1,933
|
|
|
|
$
|
4,240
|
|
|
|
-54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.71
|
|
|
|
$
|
0.61
|
|
|
|
16
|
%
|
|
|
$
|
1.19
|
|
|
|
$
|
2.56
|
|
|
|
-54
|
%
|
Diluted
|
|
|
|
$
|
0.69
|
|
|
|
$
|
0.60
|
|
|
|
15
|
%
|
|
|
$
|
1.17
|
|
|
|
$
|
2.51
|
|
|
|
-53
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
1,605.7
|
|
|
|
|
1,646.9
|
|
|
|
|
|
|
|
1,623.8
|
|
|
|
|
1,657.8
|
|
|
|
|
Diluted
|
|
|
|
|
1,641.2
|
|
|
|
|
1,678.6
|
|
|
|
|
|
|
|
1,659.1
|
|
|
|
|
1,692.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
|
|
$
|
0.20
|
|
|
|
$
|
0.18
|
|
|
|
|
|
|
$
|
0.78
|
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
May 31,
|
|
|
|
(Dollars in millions)
|
|
|
|
2018
|
|
|
2017
|
|
|
% Change
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
|
|
$
|
4,249
|
|
|
$
|
3,808
|
|
|
12
|
%
|
Short-term investments
|
|
|
|
|
996
|
|
|
|
2,371
|
|
|
-58
|
%
|
Accounts receivable, net
|
|
|
|
|
3,498
|
|
|
|
3,677
|
|
|
-5
|
%
|
Inventories
|
|
|
|
|
5,261
|
|
|
|
5,055
|
|
|
4
|
%
|
Prepaid expenses and other current assets
|
|
|
|
|
1,130
|
|
|
|
1,150
|
|
|
-2
|
%
|
Total current assets
|
|
|
|
|
15,134
|
|
|
|
16,061
|
|
|
-6
|
%
|
Property, plant and equipment, net
|
|
|
|
|
4,454
|
|
|
|
3,989
|
|
|
12
|
%
|
Identifiable intangible assets, net
|
|
|
|
|
285
|
|
|
|
283
|
|
|
1
|
%
|
Goodwill
|
|
|
|
|
154
|
|
|
|
139
|
|
|
11
|
%
|
Deferred income taxes and other assets
|
|
|
|
|
2,509
|
|
|
|
2,787
|
|
|
-10
|
%
|
TOTAL ASSETS
|
|
|
|
$
|
22,536
|
|
|
$
|
23,259
|
|
|
-3
|
%
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
0
|
%
|
Notes payable
|
|
|
|
|
336
|
|
|
|
325
|
|
|
3
|
%
|
Accounts payable
|
|
|
|
|
2,279
|
|
|
|
2,048
|
|
|
11
|
%
|
Accrued liabilities
|
|
|
|
|
3,269
|
|
|
|
3,011
|
|
|
9
|
%
|
Income taxes payable
|
|
|
|
|
150
|
|
|
|
84
|
|
|
79
|
%
|
Total current liabilities
|
|
|
|
|
6,040
|
|
|
|
5,474
|
|
|
10
|
%
|
Long-term debt
|
|
|
|
|
3,468
|
|
|
|
3,471
|
|
|
0
|
%
|
Deferred income taxes and other liabilities
|
|
|
|
|
3,216
|
|
|
|
1,907
|
|
|
69
|
%
|
Redeemable preferred stock
|
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
Shareholders’ equity
|
|
|
|
|
9,812
|
|
|
|
12,407
|
|
|
-21
|
%
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
$
|
22,536
|
|
|
$
|
23,259
|
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
DIVISIONAL REVENUES
1
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
Currency
|
|
|
TWELVE MONTHS ENDED
|
|
|
%
|
|
|
Currency
|
(Dollars in millions)
|
|
|
|
5/31/2018
|
|
|
5/31/2017
|
|
|
Change
|
|
|
Changes
2
|
|
|
5/31/2018
|
|
|
5/31/2017
|
|
|
Change
|
|
|
Changes
2
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
$
|
2,525
|
|
|
$
|
2,457
|
|
|
|
3
|
%
|
|
|
3
|
%
|
|
|
$
|
9,322
|
|
|
$
|
9,684
|
|
|
-4
|
%
|
|
|
-4
|
%
|
Apparel
|
|
|
|
|
1,207
|
|
|
|
1,142
|
|
|
|
6
|
%
|
|
|
6
|
%
|
|
|
|
4,938
|
|
|
|
4,886
|
|
|
1
|
%
|
|
|
1
|
%
|
Equipment
|
|
|
|
|
143
|
|
|
|
154
|
|
|
|
-7
|
%
|
|
|
-7
|
%
|
|
|
|
595
|
|
|
|
646
|
|
|
-8
|
%
|
|
|
-8
|
%
|
Total
|
|
|
|
|
3,875
|
|
|
|
3,753
|
|
|
|
3
|
%
|
|
|
3
|
%
|
|
|
|
14,855
|
|
|
|
15,216
|
|
|
-2
|
%
|
|
|
-2
|
%
|
Europe, Middle East & Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
1,625
|
|
|
|
1,348
|
|
|
|
21
|
%
|
|
|
7
|
%
|
|
|
|
5,875
|
|
|
|
5,192
|
|
|
13
|
%
|
|
|
6
|
%
|
Apparel
|
|
|
|
|
741
|
|
|
|
557
|
|
|
|
33
|
%
|
|
|
18
|
%
|
|
|
|
2,940
|
|
|
|
2,395
|
|
|
23
|
%
|
|
|
16
|
%
|
Equipment
|
|
|
|
|
100
|
|
|
|
86
|
|
|
|
16
|
%
|
|
|
4
|
%
|
|
|
|
427
|
|
|
|
383
|
|
|
11
|
%
|
|
|
6
|
%
|
Total
|
|
|
|
|
2,466
|
|
|
|
1,991
|
|
|
|
24
|
%
|
|
|
10
|
%
|
|
|
|
9,242
|
|
|
|
7,970
|
|
|
16
|
%
|
|
|
9
|
%
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
1,003
|
|
|
|
765
|
|
|
|
31
|
%
|
|
|
21
|
%
|
|
|
|
3,496
|
|
|
|
2,920
|
|
|
20
|
%
|
|
|
16
|
%
|
Apparel
|
|
|
|
|
434
|
|
|
|
293
|
|
|
|
48
|
%
|
|
|
37
|
%
|
|
|
|
1,508
|
|
|
|
1,188
|
|
|
27
|
%
|
|
|
23
|
%
|
Equipment
|
|
|
|
|
31
|
|
|
|
29
|
|
|
|
7
|
%
|
|
|
2
|
%
|
|
|
|
130
|
|
|
|
129
|
|
|
1
|
%
|
|
|
-1
|
%
|
Total
|
|
|
|
|
1,468
|
|
|
|
1,087
|
|
|
|
35
|
%
|
|
|
25
|
%
|
|
|
|
5,134
|
|
|
|
4,237
|
|
|
21
|
%
|
|
|
18
|
%
|
Asia Pacific & Latin America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
|
991
|
|
|
|
903
|
|
|
|
10
|
%
|
|
|
11
|
%
|
|
|
|
3,575
|
|
|
|
3,285
|
|
|
9
|
%
|
|
|
9
|
%
|
Apparel
|
|
|
|
|
383
|
|
|
|
309
|
|
|
|
24
|
%
|
|
|
25
|
%
|
|
|
|
1,347
|
|
|
|
1,185
|
|
|
14
|
%
|
|
|
15
|
%
|
Equipment
|
|
|
|
|
62
|
|
|
|
66
|
|
|
|
-6
|
%
|
|
|
-5
|
%
|
|
|
|
244
|
|
|
|
267
|
|
|
-9
|
%
|
|
|
-8
|
%
|
Total
|
|
|
|
|
1,436
|
|
|
|
1,278
|
|
|
|
12
|
%
|
|
|
13
|
%
|
|
|
|
5,166
|
|
|
|
4,737
|
|
|
9
|
%
|
|
|
10
|
%
|
Global Brand Divisions
3
|
|
|
|
|
24
|
|
|
|
18
|
|
|
|
33
|
%
|
|
|
4
|
%
|
|
|
|
88
|
|
|
|
73
|
|
|
21
|
%
|
|
|
12
|
%
|
TOTAL NIKE BRAND
|
|
|
|
|
9,269
|
|
|
|
8,127
|
|
|
|
14
|
%
|
|
|
9
|
%
|
|
|
|
34,485
|
|
|
|
32,233
|
|
|
7
|
%
|
|
|
5
|
%
|
Converse
|
|
|
|
|
512
|
|
|
|
554
|
|
|
|
-8
|
%
|
|
|
-14
|
%
|
|
|
|
1,886
|
|
|
|
2,042
|
|
|
-8
|
%
|
|
|
-11
|
%
|
Corporate4 |
|
|
|
|
8
|
|
|
|
(4
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
26
|
|
|
|
75
|
|
|
—
|
|
|
|
—
|
|
TOTAL NIKE, INC. REVENUES
|
|
|
|
$
|
9,789
|
|
|
$
|
8,677
|
|
|
|
13
|
%
|
|
|
8
|
%
|
|
|
$
|
36,397
|
|
|
$
|
34,350
|
|
|
6
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NIKE BRAND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
|
$
|
6,144
|
|
|
$
|
5,473
|
|
|
|
12
|
%
|
|
|
8
|
%
|
|
|
$
|
22,268
|
|
|
$
|
21,081
|
|
|
6
|
%
|
|
|
4
|
%
|
Apparel
|
|
|
|
|
2,765
|
|
|
|
2,301
|
|
|
|
20
|
%
|
|
|
15
|
%
|
|
|
|
10,733
|
|
|
|
9,654
|
|
|
11
|
%
|
|
|
9
|
%
|
Equipment
|
|
|
|
|
336
|
|
|
|
335
|
|
|
|
0
|
%
|
|
|
-3
|
%
|
|
|
|
1,396
|
|
|
|
1,425
|
|
|
-2
|
%
|
|
|
-4
|
%
|
Global Brand Divisions3 |
|
|
|
|
24
|
|
|
|
18
|
|
|
|
33
|
%
|
|
|
4
|
%
|
|
|
|
88
|
|
|
|
73
|
|
|
21
|
%
|
|
|
12
|
%
|
TOTAL NIKE BRAND REVENUES
|
|
|
|
$
|
9,269
|
|
|
$
|
8,127
|
|
|
|
14
|
%
|
|
|
9
|
%
|
|
|
$
|
34,485
|
|
|
$
|
32,233
|
|
|
7
|
%
|
|
|
5
|
%
|
1 Certain prior year amounts have been reclassified to
conform to fiscal 2018 presentation. This includes reclassified
operating segment data to reflect the changes in the Company's
operating structure, which became effective June 1, 2017. These
changes had no impact on previously reported consolidated results of
operations or shareholders' equity.
|
2 The percent change has been calculated using actual
exchange rates in use during the comparative prior year period to
enhance the visibility of the underlying business trends by
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 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 the Company's central foreign
exchange risk management program.
|
|
|
NIKE, Inc.
|
SUPPLEMENTAL NIKE BRAND REVENUE DETAILS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
TWELVE MONTHS ENDED
|
|
|
|
|
|
Currency
|
(Dollars in millions)
|
|
|
|
5/31/2018
|
|
|
5/31/2017
1
|
|
|
% Change
|
|
|
Changes
2
|
NIKE Brand Revenues by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales to Wholesale Customers
|
|
|
|
$
|
23,969
|
|
|
$
|
23,078
|
|
|
|
4
|
%
|
|
|
2
|
%
|
Sales through NIKE Direct
|
|
|
|
|
10,428
|
|
|
|
9,082
|
|
|
|
15
|
%
|
|
|
12
|
%
|
Global Brand Divisions3 |
|
|
|
|
88
|
|
|
|
73
|
|
|
|
21
|
%
|
|
|
12
|
%
|
TOTAL NIKE BRAND REVENUES
|
|
|
|
$
|
34,485
|
|
|
$
|
32,233
|
|
|
|
7
|
%
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE Brand Revenues on a Wholesale Equivalent Basis:
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales to Wholesale Customers
|
|
|
|
$
|
23,969
|
|
|
$
|
23,078
|
|
|
|
4
|
%
|
|
|
2
|
%
|
Sales from our Wholesale Operations to NIKE Direct Operations
|
|
|
|
|
6,332
|
|
|
|
5,616
|
|
|
|
13
|
%
|
|
|
10
|
%
|
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES
|
|
|
|
$
|
30,301
|
|
|
$
|
28,694
|
|
|
|
6
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE Brand Wholesale Equivalent Revenues by:
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Men’s
|
|
|
|
$
|
17,114
|
|
|
$
|
16,041
|
|
|
|
7
|
%
|
|
|
5
|
%
|
Women’s
|
|
|
|
|
6,915
|
|
|
|
6,644
|
|
|
|
4
|
%
|
|
|
2
|
%
|
Young Athletes’
|
|
|
|
|
4,906
|
|
|
|
4,838
|
|
|
|
1
|
%
|
|
|
-1
|
%
|
Others5 |
|
|
|
|
1,366
|
|
|
|
1,171
|
|
|
|
17
|
%
|
|
|
13
|
%
|
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES
|
|
|
|
$
|
30,301
|
|
|
$
|
28,694
|
|
|
|
6
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE Brand Wholesale Equivalent Revenues by:
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Running
|
|
|
|
$
|
5,198
|
|
|
$
|
4,860
|
|
|
|
7
|
%
|
|
|
5
|
%
|
NIKE Basketball
|
|
|
|
|
1,494
|
|
|
|
1,292
|
|
|
|
16
|
%
|
|
|
14
|
%
|
Jordan Brand
|
|
|
|
|
2,856
|
|
|
|
3,098
|
|
|
|
-8
|
%
|
|
|
-9
|
%
|
Football (Soccer)
|
|
|
|
|
2,146
|
|
|
|
1,984
|
|
|
|
8
|
%
|
|
|
5
|
%
|
Training
|
|
|
|
|
3,126
|
|
|
|
3,080
|
|
|
|
1
|
%
|
|
|
0
|
%
|
Sportswear
|
|
|
|
|
10,018
|
|
|
|
8,988
|
|
|
|
11
|
%
|
|
|
8
|
%
|
Others6 |
|
|
|
|
5,463
|
|
|
|
5,392
|
|
|
|
1
|
%
|
|
|
0
|
%
|
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES
|
|
|
|
$
|
30,301
|
|
|
$
|
28,694
|
|
|
|
6
|
%
|
|
|
4
|
%
|
1 Certain prior year amounts have been reclassified to
conform to fiscal 2018 presentation. These changes had no impact on
previously reported consolidated results of operations or
shareholders’ equity.
|
2 The percent change has been calculated using actual
exchange rates in use during the comparative prior year period to
enhance the visibility of the underlying business trends by
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 the Company’s NIKE Brand
market footprint if it had no NIKE Direct operations. NIKE Brand
wholesale equivalent revenues consist of 1) sales to external
wholesale customers and 2) internal sales from the Company’s
wholesale operations to its NIKE Direct 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 TAXES
1,2
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
%
|
|
|
TWELVE MONTHS ENDED
|
|
|
%
|
(Dollars in millions)
|
|
|
|
5/31/2018
|
|
|
5/31/2017
|
|
|
Change
|
|
|
5/31/2018
|
|
|
5/31/2017
|
|
|
Change
|
North America
|
|
|
|
$
|
975
|
|
|
|
$
|
979
|
|
|
|
0
|
%
|
|
|
$
|
3,600
|
|
|
|
$
|
3,875
|
|
|
|
-7
|
%
|
Europe, Middle East & Africa
|
|
|
|
|
382
|
|
|
|
|
348
|
|
|
|
10
|
%
|
|
|
|
1,587
|
|
|
|
|
1,507
|
|
|
|
5
|
%
|
Greater China
|
|
|
|
|
539
|
|
|
|
|
380
|
|
|
|
42
|
%
|
|
|
|
1,807
|
|
|
|
|
1,507
|
|
|
|
20
|
%
|
Asia Pacific & Latin America
|
|
|
|
|
340
|
|
|
|
|
277
|
|
|
|
23
|
%
|
|
|
|
1,189
|
|
|
|
|
980
|
|
|
|
21
|
%
|
Global Brand Divisions3 |
|
|
|
|
(732
|
)
|
|
|
|
(689
|
)
|
|
|
-6
|
%
|
|
|
|
(2,658
|
)
|
|
|
|
(2,677
|
)
|
|
|
1
|
%
|
TOTAL NIKE BRAND
|
|
|
|
|
1,504
|
|
|
|
|
1,295
|
|
|
|
16
|
%
|
|
|
|
5,525
|
|
|
|
|
5,192
|
|
|
|
6
|
%
|
Converse
|
|
|
|
|
104
|
|
|
|
|
137
|
|
|
|
-24
|
%
|
|
|
|
310
|
|
|
|
|
477
|
|
|
|
-35
|
%
|
Corporate4 |
|
|
|
|
(381
|
)
|
|
|
|
(246
|
)
|
|
|
-55
|
%
|
|
|
|
(1,456
|
)
|
|
|
|
(724
|
)
|
|
|
-101
|
%
|
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES
|
|
|
|
|
1,227
|
|
|
|
|
1,186
|
|
|
|
3
|
%
|
|
|
|
4,379
|
|
|
|
|
4,945
|
|
|
|
-11
|
%
|
Interest expense (income), net
|
|
|
|
|
12
|
|
|
|
|
18
|
|
|
|
—
|
|
|
|
|
54
|
|
|
|
|
59
|
|
|
|
—
|
|
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES
|
|
|
|
$
|
1,215
|
|
|
|
$
|
1,168
|
|
|
|
4
|
%
|
|
|
$
|
4,325
|
|
|
|
$
|
4,886
|
|
|
|
-11
|
%
|
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.
|
2 Certain prior year amounts have been reclassified to
conform to fiscal 2018 presentation. This includes reclassified
operating segment data to reflect the changes in the Company's
operating structure, which became effective June 1, 2017. These
changes had no impact on previously reported consolidated results of
operations or shareholders' equity.
|
3 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.
|
4 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.
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180628006267/en/
NIKE, Inc.
Investor Contact:
Nitesh
Sharan, 503-532-2828
or
Media Contact:
Mark
Rhodes, 503-532-8877
Source: NIKE, Inc.