Home / Knowledge / News / Apparel/Garments / Various factors help Nike's Q1FY16 diluted EPS surge 23%
Various factors help Nike's Q1FY16 diluted EPS surge 23%
Sep '15
Driven by gross margin expansion, S&A expense leverage and a lower effective tax rate, diluted earnings per share surged 23 per cent year over year at Nike Inc in the first fiscal quarter ended August 31, 2015.

In a press release, Nike said its diluted earnings per share soared 23 per cent from a fiscal ago period to $1.34, reflecting strong revenue growth, gross margin expansion, S&A expense leverage and a lower tax rate.

Revenues of the company however rose slower at 5 per cent over the first quarter of fiscal 2015 to $8.4 billion, but up 14 per cent on a currency-neutral basis.

In the first quarter of fiscal 2016, sales for the Nike brand totaled $7.9 billion, up 15 per cent on a currency-neutral basis driven by growth in every geography and nearly every key category.

Revenues for Converse were $555 million, a growth of 3 per cent on a currency-neutral basis, mainly driven by strong growth in the United States, partially offset by a decline in the United Kingdom.

For the quarter under review, gross margin expanded 90 basis points to 47.5 per cent, which it attributed to higher average selling prices and continued growth in the Direct to Consumer (DTC) business.

Nike also added that S&A increased 4 per cent over the first quarter of prior fiscal to $2.6 billion, while demand creation expense was down 7 per cent at $832 million.

“This reflects favourable comparisons against higher investment in support of the World Cup in the first quarter of fiscal 2015,” the sports goods marketer stated.

Operating overhead expense increased 10 per cent year on year to $1.7 billion in the reporting quarter, reflecting continued growth in the DTC business and targeted investments in consumer-focused digital capabilities.

Other income comprised primarily of net foreign currency exchange gains amounted to $31 million.

The effective tax rate for the first quarter of fiscal 2016 stood at 18.4 per cent, compared to 21.7 per cent for the same period last fiscal.

“This was primarily due to an increase in the proportion of earnings from operations outside of the US, which are generally subject to a lower tax rate, as well as certain non-recurring items,” it explained.

CEO Mark Parker said, “Our relentless pace of growth is driven by our proven strategy of putting the consumer first, obsessing innovation in everything we do and leveraging our powerful portfolio.”

“We are well-positioned to continue to deliver long-term growth that is both sustainable and profitable,” he observed. (AR)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Apparel/Garments | On 19th Jan 2017

Asahi Kasei to display sustainable fibre at trade shows

Asahi Kasei, specialty Japanese fibre producer, will be displaying...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

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...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

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


Browse Our Archives


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