Home / Knowledge / News / Apparel/Garments / Fiscal 2015 diluted EPS surges 25% at Nike
Fiscal 2015 diluted EPS surges 25% at Nike
27
Jun '15
Driven by gross margin expansion and a lower tax rate, earnings per share surged 25 per cent, year over year at sports good and sportswear marketer Nike Inc for the fiscal ending May 31, 2015.

A Nike press release informed that fiscal 2015 diluted earnings per share rose 25 per cent from the previous fiscal to $3.70.

“This increase reflects 10 per cent revenue growth, gross margin expansion, a lower tax rate and a lower average share count, which more than offset the impacts of higher SG&A investments,” it said.

Revenues rose much slower at 10 per cent year on year to $30.6 billion, but were up 14 per cent on a currency-neutral basis.

Revenues for Nike brand reached $28.7 billion, up 14 per cent, excluding the impact of changes in foreign currency.

Gross margin for fiscal 2015 expanded 120 basis points over fiscal 2014 to 46.0 per cent led by higher average selling prices and continued growth in the higher margin DTC business.

Selling and administrative expense grew 13 per cent to $9.9 billion, while demand creation expense was $3.2 billion, up 6 per cent from hike in investments in support of key events and product launches.

Operating overhead expense climbed 16 per cent over the last fiscal to $6.7 billion from the expanding DTC business, higher costs for operational infrastructure and investments in consumer-facing digital capabilities.

Other income, net was $58 million for the reporting fiscal, mainly comprised of net foreign currency exchange gains.

The effective tax rate for the fiscal under review was 22.2 per cent, compared to 24.0 per cent in the prior fiscal, primarily due to the favourable resolution of tax audits across multiple jurisdictions.

For fiscal 2015, net income soared 22 per cent to $3.3 billion reflecting strong revenue growth, gross margin expansion and a lower tax rate.

“CEO Mark Parker said, “Our consistent growth is fueled by our connection to the consumer and our ability to deliver innovation at an unprecedented pace and scale.”

Inventories at the end of the fiscal totaled to $4.3 billion, up 10 percent from May 31, 2014, driven primarily by a 13 per cent increase in Nike brand wholesale unit inventories.

Cash and short-term investments were $5.9 billion, $782 million higher than last year as growth in net income and collateral received from counterparties as a result of hedging activities.

During the fourth quarter, Nike repurchased a total of 6.8 million shares for approximately $678 million as part of the four-year, $8.0 billion program approved by its board of directors in September 2012.

As of the end of fiscal 2015, a total of 80.9 million shares had been repurchased under this program for approximately $6.0 billion, at an average cost of $73.55 per share.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Alibaba Group

Apparel/Garments | On 18th Jan 2017

Alibaba forges global alliance to fight counterfeiting

Jack Ma led Alibaba Group has forged an alliance with various global...

Apparel/Garments | On 18th Jan 2017

HanesBrands earns above average scores in CDP 2016

Global apparel and innerwear retailer HanesBrands said it has...

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search