Nike posts increased fourth quarter revenue

Worldwide
Published:  30 June, 2017

Revenues for sportswear Group Nike rose 5% to US$8.7 billion, up 7% on a currency-neutral basis, with international geographies and the Direct-to-Consumer (DTC) businesses leading to strong revenue growth in the fourth quarter and full year.

In the fourth quarter, revenues for the Nike brand were US$8.1 billion, up 7% on a currency-neutral basis; driven by double-digit growth in Western Europe, Greater China, and the Emerging Markets, and strong growth in the sportswear and running categories. Gross margin for the brand is reported to have declined 180 basis points to 44.1% as higher average selling prices were more than offset by unfavourable changes in foreign currency exchange rates and higher product costs. Net income increased 19% to US$1 billion, attributed to global revenue growth, lower selling and administrative expense and a lower tax rate which were slightly offset by a gross margin decline.

In full fiscal 2017, revenues for the Group rose 6% to US$34.4 billion, +8% on a currency-neutral basis. Fiscal 2017 diluted earnings per share increased 16% to US$2.51. Revenues for the Nike brand were US$32.2 billion, also up 8%.

“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”, he added.