Home / Knowledge / News / Textiles / Nike revenue grows 13% in Q4FY18
Nike revenue grows 13% in Q4FY18
03
Jul '18
Courtesy: Nike
Courtesy: Nike
The fourth quarter revenue of the US headquartered Nike for fiscal 2018 has gone up13 per cent to a total of $9.8 billion driven by strong double-digit revenue growth in international markets and Nike Direct globally, and a return to growth in North America. Revenue for the Nike Brand for full year 2018 was posted at $34.5 billion, up 5 per cent.

Diluted earnings per share for the fourth quarter rose 15 per cent to $0.69, primarily due to strong revenue growth, gross margin expansion, a lower tax rate and a lower average share count, which were partially offset by higher selling and administrative expense. While for fiscal 2018, diluted earnings per share decreased 53 per cent to $1.17, which includes a decline in the weighted average diluted common shares outstanding.

In the fourth quarter, net income rose 13 per cent to $1.1 billion primarily due to strong global revenue growth, gross margin expansion and a lower tax rate, which were partially offset by higher selling and administrative expense, while diluted earnings per share increased 15 per cent to $0.69 reflecting a 2 percent decline in the weighted average diluted common shares outstanding. However, for full year, the net income decreased 54 per cent to $1.9 billion primarily related to the impact of the Tax Act, which offset strong revenue growth.

Selling and administrative expense soared 17 per cent in the fourth quarter to $3.1 billion. Demand creation expense was $983 million, up 25 per cent, primarily driven by sports marketing investments, new product launch and brand campaigns, and unfavourable changes in foreign currency exchange rates. Operating overhead expense increased 14 per cent to $2.1 billion, largely due to investments in global operations and capabilities to drive the Consumer Direct Offense, and, to a lesser extent, unfavorable changes in foreign currency exchange rates.

"Our new innovation is winning with consumers, driving significant momentum in our international geographies and a return to growth in North America," said Mark Parker, chairman, president and CEO, Nike, Inc. "Fueled by a complete digital transformation of our company end-to-end, this year set the foundation for Nike’s next wave of long-term, sustainable growth and profitability."

Cash and equivalents and short-term investments were $5.2 billion in 2018, $934 million lower than last year as share repurchases, dividends and investments in infrastructure more than offset net income and proceeds from employee exercises of stock options.

The company also announced that its board of directors has authorised a new four-year, $15 billion programme to repurchase shares of Nike’s Class B Common Stock. The company anticipates that the current $12 billion share repurchase programme will be completed within fiscal 2019, and the new programme will commence upon the completion of the current programme. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 13th Jul 2020

Egypt signs agreement for new spinning factory in Mahalla

The Holding Company for Cotton, Spinning, Weaving and Clothes in...

Pic: Shutterstock

Retail | On 13th Jul 2020

Primark, John Lewis reject govt call on furloughed staff

Primark has rejected the UK government's call to employing back...

Pic: Edcon.co.za

Retail | On 13th Jul 2020

TFG offers to acquire selected Jet stores and assets

TFG, one of the foremost independent chain-store groups in South...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The new deal is better than NAFTA for the US textile industry

Textile industry, Head honchos

Textile industry
Head honchos

South India has a very strong manufacturing base

Rahuul Jashnani, Jashn

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

KK Lalpuria,

KK Lalpuria

Indo Count Industries is an India-based home textile company engaged in...

Jason Remnant,

Jason Remnant

<div>Xaar plc develops digital inkjet technology; it designs and...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Sanjay Raut, Garware Technical Fibres Ltd

Sanjay Raut
Garware Technical Fibres Ltd

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2020

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


Advanced Search