Nike Q1 2018 revenue totals $9.1 billion

The company's gross margin for the reported period declined to 43.7 per cent due to unfavorable changes in foreign currency exchange rates and, to a lesser extent, a higher mix of off-price sales. Selling and administrative expense decreased 1 per cent to $2.9 billion. Demand creation expense was $855 million, down 18 per cent, reflecting higher prior year investments in key sports events.

Net income decreased 24 per cent to $950 million as lower selling and administrative expense was offset by a gross margin decline, a higher effective tax rate and growth in other expense, net. While diluted earnings per share decreased 22 per cent from the prior year to $0.57 reflecting a nearly 2 per cent decline in the weighted average diluted common shares outstanding.

Cash and equivalents and short-term investments were $5.5 billion, $732 million higher than last year as net income and proceeds from the issuance of debt in the second quarter of fiscal 2017 were partially offset by share repurchases, dividends and investments in infrastructure.

During the reported period, a new company alignment was created as a result of the Consumer Direct Offense which simplified Nike's geography structure from six geographies to four consisting of North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America.

Fibre2Fashion News Desk – India