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Nike Inc revenues up 12% to $13.7bn for fiscal 2005
28 Jun '05
9 min read
Income Statement Review
In the fourth quarter, gross margins were 45.2 percent of revenue compared to 43.8 percent last year. For the full year, gross margins were 44.5 percent compared to 42.9 percent last year. Selling and administrative expenses were 30.6 percent of fourth quarter revenues, compared to 29.8 percent last year.
For the full year, selling and administrative expenses were 30.7 percent of full year revenues versus 30.2 percent last year. The effective tax rate was 35.0 percent for the fourth quarter and 34.9 percent for the full year. The tax provision for the fourth quarter reflected a charge related to the Company's decision to repatriate $500 million of foreign earnings under the American Jobs Creation Act during fiscal 2006. The net impact of this charge was not material to our effective tax rate for the quarter or the full year.
Balance Sheet Review
At fiscal year-end, global inventories stood at $1.8 billion, an increase of 10 percent from last year. Cash and short-term investments were $1.8 billion at fiscal year-end, compared to $1.2 billion last year.
Share Repurchase
During the quarter, the Company purchased a total of 1,853,500 shares for approximately $152.7 million in conjunction with the Company's four-year, $1.5 billion share repurchase program that was approved by the Board of Directors in June 2004. To date, the Company has repurchased a total of 6,924,400 shares under this program.
In the fourth quarter, gross margins were 45.2 percent of revenue compared to 43.8 percent last year. For the full year, gross margins were 44.5 percent compared to 42.9 percent last year. Selling and administrative expenses were 30.6 percent of fourth quarter revenues, compared to 29.8 percent last year.
For the full year, selling and administrative expenses were 30.7 percent of full year revenues versus 30.2 percent last year. The effective tax rate was 35.0 percent for the fourth quarter and 34.9 percent for the full year. The tax provision for the fourth quarter reflected a charge related to the Company's decision to repatriate $500 million of foreign earnings under the American Jobs Creation Act during fiscal 2006. The net impact of this charge was not material to our effective tax rate for the quarter or the full year.
Balance Sheet Review
At fiscal year-end, global inventories stood at $1.8 billion, an increase of 10 percent from last year. Cash and short-term investments were $1.8 billion at fiscal year-end, compared to $1.2 billion last year.
Share Repurchase
During the quarter, the Company purchased a total of 1,853,500 shares for approximately $152.7 million in conjunction with the Company's four-year, $1.5 billion share repurchase program that was approved by the Board of Directors in June 2004. To date, the Company has repurchased a total of 6,924,400 shares under this program.
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