Nike with revenue growth

“FY19 was a pivotal year for Nike as we continue to bring our Consumer Direct Offense to life throughout the marketplace”, commented Mark Parker, Chairman, President and CEO, adding: “Our distinctive innovation and digital advantage led to accelerated growth across our complete portfolio, while our Brand fuelled deeper relationships with consumers around the globe.”

“Reflecting on our FY19 performance, it is clear that growth is paramount at Nike, and that our strong growth is being driven by strategic transformation”, commented Andy Campion, Executive Vice President and CFO, NIKE, Inc., adding: “Amid foreign exchange volatility, our double-digit currency-neutral revenue growth and expanding ROIC showcase Nike’s unrivaled ability to create extraordinary value for consumers and shareholders over the long term.”

Fourth Quarter Review

Revenue for Nike increased by 4% totalling 10.2 billion US dollars, up by 10% on a currency-neutral basis. Revenue for the Nike brand reached 9.7 billion US dollars, up by 10% on a currency-neutral basis, driven by growth across Nike Direct and wholesale, key categories including Sportswear, Jordan and Basketball, and continued growth across footwear and apparel. Revenue for Converse totalled 491 million US dollars, flat to prior year on a currency-neutral basis, mainly driven by double-digit growth in Asia and digital which was offset by declines in the US and Europe. Net income in the period reached 989 million US dollars and diluted earnings per share were 0.62 US dollars, driven by strong revenue growth, gross margin expansion, and a lower average share count, which were slightly offset by higher selling and administrative expense and a higher tax rate.

Fiscal 2019 Review

Revenue for Nike rose by 7% totalling 39.1 billion US dollars, up by 11% on a currency-neutral basis. The Nike brand totalled revenue of 37.2 billion US dollars, up by 11% on a currency-neutral basis driven by growth across Nike Direct and wholesale, key categories including Sportswear, Jordan and Running, and double-digit growth across footwear and apparel. Nike Direct revenue totalled 11.8 billion US dollars, up by 16% on a currency-neutral basis, driven by a 35% increase in digital commerce sales, 6% growth in comparable store sales as well as the addition of new stores. Sales to wholesale customers increased by 10%. Revenue for Converse reached 1.9 billion US dollars, up by 3% on a currency-neutral basis, mainly driven by double-digit growth in Asia and digital which was partially offset by declines in the US and Europe. Net income increased to 4.0 billion US dollars and diluted earnings per share totalled 2.49 US dollars, driven by strong revenue growth, gross margin expansion, a lower average share count and a lower tax rate, which was partially offset by higher selling and administrative expense.