Nike, Inc. has announced that fourth quarter revenue increased to 10.2
billion dollars, up 4 percent on a reported basis and 10 percent on a
currency-neutral basis, while full year revenue rose to 39.1 billion
dollars, up 7 percent on a reported basis and 11 percent on a
currency-neutral basis, as strategic investments in innovation and digital
drove global consumer demand led by Nike Direct in both periods. The
company added that diluted earnings per share in the fourth quarter were 62
cents, while diluted earnings per share for the full year was 2.49
dollars.
“FY19 was a pivotal year for Nike as we continue to bring our Consumer
Direct Offense to life throughout the marketplace,” said Mark Parker,
Chairman, President and CEO, Nike, in a statement, adding, “Our distinctive
innovation and digital advantage led to accelerated growth across our
complete portfolio, while our brand fuelled deeper relationships with
consumers around the globe.”
Review of Nike’s Q4 income statement
Fourth quarter revenues for the Nike brand were 9.7 billion dollars, up
10 percent on a currency-neutral basis, which the company said, were driven
by growth across Nike Direct and wholesale, key categories including
sportswear, Jordan and basketball, and continued growth across footwear and
apparel.
Revenues for Converse were 491 million dollars, flat to prior year on a
currency-neutral basis, mainly driven by double-digit growth in Asia and
digital which was offset by declines in the US and Europe.
Gross margin increased 80 basis points to 45.5 percent. Net income was
989 million dollars and diluted earnings per share was 62 cents driven by
strong revenue growth, gross margin expansion, and a lower average share
count, which were slightly offset by higher selling and administrative
expense and a higher tax rate.
Highlights of Nike’s FY19 performance
Nike said, full year revenues for the Nike brand were 37.2 billion
dollars, up 11 percent on a currency-neutral basis driven by growth across
Nike Direct and wholesale, key categories including sportswear, Jordan and
running, and double-digit growth across footwear and apparel. Nike Direct
revenues were 11.8 billion dollars, up 16 percent on a currency-neutral
basis, driven by a 35 percent increase in digital commerce sales, 6 percent
growth in comparable store sales as well as the addition of new stores.
Sales to wholesale customers increased 10 percent.
Revenues for Converse were 1.9 billion dollars, up 3 percent on a
currency-neutral basis, mainly driven by double-digit growth in Asia and
digital which was partially offset by declines in the US and Europe.
Gross margin increased 90 basis points to 44.7 percent. The company
added that net income increased to 4 billion dollars and diluted earnings
per share was 2.49 dollars driven by strong revenue growth, gross margin
expansion, a lower average share count and a lower tax rate, which was
partially offset by higher selling and administrative expense.
Picture:Nike media gallery
