Second Quarter Continuing Operations Income Statement Review
-Revenues for NIKE, Inc. increased 8 percent to $6.4 billion, up 9 percent on a currency neutral basis.
-Revenues for the NIKE Brand were $6.1 billion, up 9 percent on a currency neutral basis, with growth in every product type, geography and key category.
-Revenues for Converse were $360 million, up 11 percent on a currency neutral basis, driven by strong performance in our largest owned markets: North America, the United Kingdom, and China.
Gross margin increased 140 basis points to 43.9 percent. Gross margin benefitted from a shift in the mix of the Company’s revenues to higher margin products and businesses, higher average prices, easing raw materials product input costs and continued strength in the higher margin Direct-to-Consumer business. These benefits were partially offset by unfavorable changes in foreign exchange rates and higher labor product input costs.
Selling and administrative expense grew 14 percent to $2.1 billion. Demand creation expense was $691 million, up 13 percent versus relatively low levels in the prior year, driven by marketing support for key product launches, consumer running events and upcoming global sporting events, including the World Cup and Winter Olympics. Operating overhead expense increased 14 percent to $1.4 billion due to investments in digital innovation and other growth businesses, as well as higher Direct to Consumer costs driven by growth and new store openings.
Other expense, net was $13 million, comprised primarily of a charge relating to an adverse legal judgment in Western Europe and foreign currency exchange losses. For the quarter, the Company estimates the year-over-year change in foreign currency related gains and losses included in other expense (income), net, combined with the impact of changes in currency exchange rates on the translation of foreign currency-denominated profits, decreased pretax income by approximately $32 million.
The effective tax rate was 25.1 percent, compared to 26.8 percent for the same period last year, an improvement primarily due to an increase in the amount of earnings from non-U.S. operations, which are generally subject to a lower tax rate.
Net income increased 3 percent to $537 million while diluted earnings per share increased 4 percent to $0.59, reflecting a slight decline in the weighted average diluted common shares outstanding.
Click here to read full results
We constantly communicate with employees at all levels
Dolphin Jingwei Machines
Taxation policies need to be made simpler
Orange O Tec
Contemporary industry is paying more and more attention to the...
Leading the digital textile printing industry, Israel-based Kornit...
Established in 1956 with a small beginning, Embee today manufactures a...
Petit Royal, co-founded by entrepreneurs <b>Ritu Ajbani and Neha...
Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...
Robin Grankvist talks about PFCs, additives and various chemicals used in...
With forces in engineering and process development, Andritz Nonwoven...
Silvia Venturini Fendi
"Yes, my confidence and positive attitude are my strengths and should be...
Label Ritu Kumar
‘Classics will return’ "There are a lot of people wearing western clothes ...
A Humming Way
A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...