Q1 results demonstrates power of NIKE growth strategy
22 Dec '10
4 min read
The effective tax rate was 25.0 percent compared to 23.6 percent for the same period last year. The effective tax rate was higher due to a larger percentage of pretax income coming from operations in the United States, which has a higher effective tax rate than operations abroad.
Net income increased 22 percent to $457 million and diluted earnings per share increased 24 percent to $0.94, reflecting higher net income and an approximate 1 percent decline in the number of diluted weighted average common shares outstanding.
November 30, 2010 Balance Sheet Review
Inventories for NIKE Inc were $2.3 billion, up 8 percent from November 30, 2009.
Cash and short-term investments at period-end were $4.8 billion, 19 percent higher than last year mainly as a result of higher net income.
Share Repurchases
During the second quarter, the Company repurchased a total of 3.5 million shares for approximately $280 million as part of the Company's four-year, $5 billion share repurchase program, approved by the Board of Directors in September 2008. As of the end of the second quarter the Company has purchased a total of 17.4 million shares for approximately $1.3 billion under this program.