Nike reports 10 percent increase in FY15 revenues

For its fourth quarter ended May 31, 2015, Nike reported diluted earnings per share increased 26 percent and fiscal 2015 diluted earnings per share rose 25 percent to 3.70 dollars, reflecting 10 percent revenue growth. Group revenues rose 5 percent to 7.8 billion dollars, up 13 percent on a currency-neutral basis in the fourth quarter and rose 10 percent to 30.6 billion dollars, up 14 percent on a currency-neutral basis, for the full year.

“Fiscal 2015 was an outstanding year for Nike,” said Mark Parker, President and CEO, Nike, adding, “Our consistent growth is fueled by our connection to the consumer and our ability to deliver innovation at an unprecedented pace and scale. At no time in our history has the growth potential been greater for Nike.”

Revenues for the Nike brand were 7.4 billion dollars, up 13 percent on a currency-neutral basis driven by growth in nearly every geography and key category except emerging markets and global football. Revenues for Converse were 435 million dollars, up 14 percent on a currency-neutral basis, mainly driven by market transitions to direct distribution in AGS (Austria, Germany and Switzerland) and strong performance in the United States. Gross margin expanded 60 basis points to 46.2 percent.

For the full year, revenues for the Nike brand were 28.7 billion dollars, up 14 percent excluding the impact of changes in foreign currency. Nike brand sales to wholesale customers increased 10 percent on a currency-neutral basis while DTC revenues grew to 6.6 billion dollars, up 29 percent excluding the impact of changes in foreign currency, driven by 16 percent growth in comparable store sales, a 59 percent increase in online sales and the addition of new stores. As of May 31, 2015, the Nike brand had 832 DTC stores in operation as compared to 768 a year ago.

On a currency neutral basis, revenue growth was driven by growth in every geography, every key category except global football and across the women’s, men’s and young athletes’ businesses. Revenues for Converse were 2 billion dollars, up 21 percent on a currency neutral basis, mainly driven by market transitions to direct distribution in AGS and strong performance in the United States. Gross margin expanded 120 basis points to 46.0 percent.