Home / Knowledge / News / Apparel/Garments / Q3FY15 net income surges 16% at Nike
Q3FY15 net income surges 16% at Nike
23
Mar '15
Driven by strong revenue growth and gross margin expansion, net income at sports goods marketer, Nike for the third fiscal quarter ended February 28, 2015 surged 16 percent year over year.

In the third quarter of fiscal 2015, Nike said its net income grew 16 per cent to $791 million, while diluted earnings per share increased 19 per cent to $0.89 per share.

Diluted earnings per share for the quarter were up 19 percent due to higher revenues, partially offset by higher SG&A investments and a higher effective tax rate, Nike said in a press release.

Revenues for the reporting quarter rose 7 per cent from the year ago quarter to $7.5 billion and also up 13 per cent on a currency neutral basis.

Revenues for the Nike brand were $6.9 billion, up 11 per cent on a currency neutral basis driven by growth in every geography and in most key categories.

Revenues for Converse totaled to $538 million, a surge of a massive 33 per cent on a currency neutral basis, mainly from continued growth and timing of shipments in North America.

Nike also attributed the surge in Converse revenue to the transition to direct distribution in Austria, Germany, Switzerland and growth in the Direct to Consumer (DTC) business.

Gross margin expanded 140 basis points to 45.9 per cent, which benefitted from a continued shift in mix to higher margin products, partially offset by higher product input and warehousing costs.

Selling and administrative expense increased 10 per cent to $2.4 billion, of which demand creation expense was $731 million, flat to the prior year quarter.

However, operating overhead expense ascended higher by 15 per cent to $1.6 billion, reflecting growth in the DTC business and investments in infrastructure and consumer-focused digital capabilities.

The effective tax rate was 24.4 per cent for the quarter under review compared to 22.5 per cent for the same period last year, primarily due to the impact of tax expense on intercompany transactions.

Inventories stood at $4.2 billion, up 12 per cent from February 28, 2014, driven by a 12 per cent increase in Nike brand wholesale inventories as well as higher inventories associated with growth in DTC.

Nike brand wholesale inventories were higher due to a 17 per cent increase in units, while changes in the average product cost per unit, decreased growth by approximately 5 percentage points.

Cash and short-term investments were $5.4 billion, $332 million higher than last year as growth in net income and collateral received from counterparties as a result of hedging activities.

“Our strong third quarter results show that our growth strategies are working, even under challenging macroeconomic conditions,” said Mark Parker, president and CEO, Nike, Inc.

“NIKE has the ability to deliver consistent shareholder value due to the strength of our brand, our relentless commitment to innovation and our powerful portfolio,” he added. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search