Nike reports 10 percent rise in revenues in FY14

REPORT_ Nike reported fiscal 2014 financial results for its fourth quarter and full year ended May 31, 2014. Despite the negative impact of changes in foreign exchange rates, diluted earnings per share for the quarter increased 3 percent. Fiscal 2014 diluted earnings per share rose 11 percent to 2.97

dollars, reflecting 10 percent revenue growth.

“These results demonstrate the energy and excitement Nike brings to the mark

et,” said President and CEO Mark Parker, adding, “Our ability to relentlessly innovate for consumers drove our growth in FY14, and will continue to fuel it for years to come. And as we grow, we remain focused on managing all areas of our business to drive sustainable, profitable growth for our shareholders.”

For the fiscal year 2014, revenues for Nike rose 10 percent to 27.8 billion dollars, up 11 percent on a currency neutral basis. Revenues for the Nike Brand were 26.1 billion dollars, up 11 percent excluding the impact of changes in foreign currency. Nike Brand wholesale revenues increased 8 percent on a currency neutral basis while DTC revenues grew to 5.3 billion dollars, up 22 percent excluding the impact of changes in foreign currency, driven by 10 percent growth in comparable store sales, new store expansion and a 42 percent increase in e-commerce sales. As of May 31, 2014, the Nike Brand had 768 DTC stores in operation as compared to 678 a year ago.

Revenues for Converse were 1.7 billion dollars, up 15 percent on a currency neutral basis, mainly driven by strong performance in the United States, China and the United Kingdom. Gross margin expanded 120 basis points to 44.8 percent. Net income increased 10 percent to 2.7 billion dollars while diluted earnings per share increased 11 percent to 2.97 dollars, reflecting a decline in the weighted average diluted common shares outstanding.

Revenues for Nike rose 11 percent to 7.4 billion dollars, up 13 percent on a currency neutral basis for the fourth quarter. Revenues for the Nike Brand were 7 billion dollars, up 13 percent on a currency neutral basis powered by growth in every key category and geography except Japan, where revenues were in line with the fourth quarter last year. Revenues for Converse were 410 million dollars, up 15 percent on a currency neutral basis, mainly driven by strong performance in the United States, China and the United Kingdom.

Net income increased 1 percent to 698 million dollars while diluted earnings per share increased 3 percent to 0.78 dollars, reflecting a decrease in the weighted average diluted common shares outstanding.