Strong first-quarter report includes $8.4 billion in revenues.
BY JACOB PALMER | DIGITAL NEWS EDITOR
Nike is enjoying a successful start to fiscal year 2015.
A strong first-quarter report, which included a reported $8.4 billion in revenues, sent its stock to record highs Thursday.
“Fiscal 2016 is off to a great start,” said chief executive Mark Parker in a news release. “Our relentless pace of growth is driven by our proven strategy of putting the consumer first, obsessing innovation in everything we do and leveraging our powerful portfolio. We’re well-positioned to continue to deliver long-term growth that is both sustainable and profitable.”
Sales climbed in each of the company’s geographies, including North America and China.
- North America increased 8 percent (9 percent currency-neutral) to $3.8 billion.
- Sales in China, where the company stumbled in recent years, increased 30 percent to $886 million.
Footwear sales climbed 9 percent (18 percent currency-neutral) to $5.1 billion.
(SOURCE: Portland Business Journal)
Some more highlights from the report:
- Selling and administrative expense increased 4 percent to $2.6 billion. Demand creation expense was $832 million, down 7 percent, reflecting World Cup spending last year. Overhead expense increased 10 percent to $1.7 billion, reflecting continued growth in the DTC business and targeted investments in infrastructure and consumer-focused digital capabilities.
- Profit increased 23 percent to $1.2 billion while diluted earnings per share increased 23 percent to $1.34, reflecting strong revenue growth, gross margin expansion, selling and administrative expense leverage, a lower tax rate and a decrease in the weighted average diluted common shares outstanding.
- Inventories were $4.4 billion, up 10 percent, driven primarily by an 8 percent increase in Nike Brand wholesale unit inventories.