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FY16 net income soars 15% at Nike
01 Jul '16
2 min read
For fiscal ended May 31, 2016, net income at US based sports goods marketer Nike soared 15 per cent year over year to $3.8 billion, driven by strong global revenue growth, gross margin expansion and a lower tax rate.
While, diluted earnings per share surged 17 per cent over fiscal 2015 to $2.16, reflecting growth in net income and the additional benefit of a decline in the weighted average diluted common shares outstanding.
Revenues for fiscal 2016 rose 6 per cent over the prior fiscal to $32.4 billion, but grew higher at 12 per cent on a currency-neutral basis.
Gross margin expanded 20 basis points to 46.2 per cent primarily driven by higher average selling prices and growth in the higher margin DTC business.
“These were partially offset by higher product costs, the negative impact of foreign currency exchange rates, and the impact from clearing excess inventory in North America,” the company said.
Other income for the reporting fiscal was $140 million, which mainly comprised of net foreign currency exchange gains.
For the reporting fiscal, the effective tax rate was 18.7 per cent as against 22.2 per cent in the previous fiscal, primarily due to an increase in the proportion of earnings from operations outside of the US. (AR)
While, diluted earnings per share surged 17 per cent over fiscal 2015 to $2.16, reflecting growth in net income and the additional benefit of a decline in the weighted average diluted common shares outstanding.
Revenues for fiscal 2016 rose 6 per cent over the prior fiscal to $32.4 billion, but grew higher at 12 per cent on a currency-neutral basis.
Gross margin expanded 20 basis points to 46.2 per cent primarily driven by higher average selling prices and growth in the higher margin DTC business.
“These were partially offset by higher product costs, the negative impact of foreign currency exchange rates, and the impact from clearing excess inventory in North America,” the company said.
Other income for the reporting fiscal was $140 million, which mainly comprised of net foreign currency exchange gains.
For the reporting fiscal, the effective tax rate was 18.7 per cent as against 22.2 per cent in the previous fiscal, primarily due to an increase in the proportion of earnings from operations outside of the US. (AR)
Fibre2fashion News Desk - India
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