NIKE, Inc. (NYSE:NKE) today reported fiscal 2024 financial
results for its third quarter ended February 29, 2024.
- Third quarter revenues were slightly up on both a reported and
currency-neutral basis* at $12.4 billion
- NIKE Direct revenues were $5.4 billion, slightly up on a
reported and currency-neutral basis
- NIKE Brand Digital sales decreased 3 percent on a reported
basis and 4 percent on a currency-neutral basis
- Wholesale revenues were $6.6 billion, up 3 percent on a
reported and currency-neutral basis
- Gross margin increased 150 basis points to 44.8 percent,
including a detriment of 50 basis points due to restructuring
charges
- Selling and administrative expense increased 7 percent to $4.2
billion, including $340 million of restructuring charges
- Diluted earnings per share was $0.77, including $0.21 of
restructuring charges. Excluding these charges, Diluted earnings
per share would have been $0.98*
“We are making the necessary adjustments to drive NIKE’s next
chapter of growth,” said John Donahoe, President & CEO, NIKE,
Inc. “We’re encouraged by the progress we’ve seen, as we build a
multiyear cycle of new innovation, sharpen our brand storytelling
and work with our wholesale partners to elevate and grow the
marketplace.”**
Matthew Friend, Executive Vice President & Chief Financial
Officer, NIKE, Inc. said, “Our teams are focused on what matters
most to return to strong growth. We are taking action to build a
faster, more efficient NIKE and maximize the impact of our new
innovation cycle.”**
Third Quarter Income Statement Review
- Revenues for NIKE, Inc. were slightly up on both a
reported and currency-neutral basis at $12.4 billion.
- Revenues for the NIKE Brand were $11.9 billion, up 2 percent on
a reported and currency-neutral basis, as currency-neutral growth
in North America, Greater China and APLA was offset by declines in
EMEA.
- Revenues for Converse were $495 million, down 19 percent on a
reported basis and down 20 percent on a currency-neutral basis,
primarily due to declines in North America and Europe.
- Gross margin increased 150 basis points to 44.8 percent,
primarily driven by strategic pricing actions and lower ocean
freight and logistics costs, partially offset by higher product
input costs and restructuring charges.
- Selling and administrative expense increased 7 percent
to $4.2 billion.
- Demand creation expense was $1.0 billion, up 10 percent,
reflecting an increase in marketing expense.
- Operating overhead expense increased 6 percent to $3.2 billion,
primarily due to restructuring charges, partially offset by lower
wage-related expenses.
- The effective tax rate was 16.5 percent compared to 16.0
percent for the same period last year.
- Net income was $1.2 billion, down 5 percent, and
Diluted earnings per share was $0.77, decreasing 3
percent.
February 29, 2024 Balance Sheet Review
- Inventories for NIKE, Inc. were $7.7 billion, down 13
percent compared to the prior year, reflecting a decrease in
units.
- Cash and equivalents and short-term investments were
$10.6 billion, down approximately $0.2 billion from last year, as
cash generated by operations was more than offset by share
repurchases, cash dividends, capital expenditures and bond
repayment.
Shareholder Returns
NIKE continues to have a strong track record of investing to
fuel growth and consistently increasing returns to shareholders,
including 22 consecutive years of increasing dividend payouts. In
the third quarter, NIKE returned approximately $1.4 billion to
shareholders, including:
- Dividends of $562 million, up 6 percent from the prior
year.
- Share repurchases of $866 million, reflecting 7.9
million shares retired as part of the Company’s four-year, $18
billion program approved by the Board of Directors in June 2022. As
of February 29, 2024, a total of 73.8 million shares have been
repurchased under the program for a total of approximately $8.0
billion.
Conference Call
NIKE, Inc. management will host a conference call beginning at
approximately 2:00 p.m. PT on March 21, 2024, to review fiscal
third quarter results. The conference call will be broadcast live
via the Internet and can be accessed at https://investors.nike.com.
For those unable to listen to the live broadcast, an archived
version will be available at the same location through
approximately 9:00 p.m. PT, April 11, 2024.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world's leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary
brand, designs, markets and distributes athletic lifestyle
footwear, apparel and accessories. For more information, NIKE,
Inc.’s earnings releases and other financial information are
available on the Internet at https://investors.nike.com.
Individuals can also visit https://about.nike.com/en/newsroom and
follow @NIKE.
*
Non-GAAP financial measures. See
additional information in the accompanying Divisional Revenues
table and Diluted earnings per share table.
**
The marked paragraphs contain
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially. These risks
and uncertainties are detailed from time to time in reports filed
by NIKE with the U.S. Securities and Exchange Commission (SEC),
including Forms 8-K, 10-Q and 10-K.
NIKE, Inc.
CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited)
THREE MONTHS ENDED
%
NINE MONTHS ENDED
%
(In millions, except per share data)
2/29/2024
2/28/2023
Change
2/29/2024
2/28/2023
Change
Revenues
$
12,429
$
12,390
0
%
$
38,756
$
38,392
1
%
Cost of sales
6,867
7,019
-2
%
21,503
21,695
-1
%
Gross profit
5,562
5,371
4
%
17,253
16,697
3
%
Gross margin
44.8
%
43.3
%
44.5
%
43.5
%
Demand creation expense
1,011
923
10
%
3,194
2,968
8
%
Operating overhead expense
3,215
3,036
6
%
9,294
9,035
3
%
Total selling and administrative
expense
4,226
3,959
7
%
12,488
12,003
4
%
% of revenues
34.0
%
32.0
%
32.2
%
31.3
%
Interest expense (income), net
(52
)
(7
)
—
(108
)
22
—
Other (income) expense, net
(16
)
(58
)
—
(101
)
(283
)
—
Income before income taxes
1,404
1,477
-5
%
4,974
4,955
0
%
Income tax expense
232
237
-2
%
774
916
-16
%
Effective tax rate
16.5
%
16.0
%
15.6
%
18.5
%
NET INCOME
$
1,172
$
1,240
-5
%
$
4,200
$
4,039
4
%
Earnings per common share:
Basic
$
0.77
$
0.80
-4
%
$
2.76
$
2.59
7
%
Diluted
$
0.77
$
0.79
-3
%
$
2.74
$
2.57
7
%
Weighted average common shares
outstanding:
Basic
1,513.2
1,543.8
1,520.8
1,556.7
Diluted
1,526.5
1,564.8
1,534.0
1,574.4
Dividends declared per common share
$
0.370
$
0.340
$
1.080
$
0.985
NIKE, Inc.
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
February 29,
February 28,
% Change
(Dollars in millions)
2024
2023
ASSETS
Current assets:
Cash and equivalents
$
8,960
$
6,955
29
%
Short-term investments
1,613
3,847
-58
%
Accounts receivable, net
4,526
4,513
0
%
Inventories
7,726
8,905
-13
%
Prepaid expenses and other current
assets
1,928
1,815
6
%
Total current assets
24,753
26,035
-5
%
Property, plant and equipment, net
5,082
4,939
3
%
Operating lease right-of-use assets,
net
2,856
2,834
1
%
Identifiable intangible assets, net
259
277
-6
%
Goodwill
240
281
-15
%
Deferred income taxes and other assets
4,166
3,928
6
%
TOTAL ASSETS
$
37,356
$
38,294
-2
%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt
$
—
$
500
-100
%
Notes payable
6
14
-57
%
Accounts payable
2,340
2,675
-13
%
Current portion of operating lease
liabilities
474
435
9
%
Accrued liabilities
5,818
5,594
4
%
Income taxes payable
391
330
18
%
Total current liabilities
9,029
9,548
-5
%
Long-term debt
8,930
8,925
0
%
Operating lease liabilities
2,691
2,692
0
%
Deferred income taxes and other
liabilities
2,480
2,598
-5
%
Redeemable preferred stock
—
—
—
Shareholders’ equity
14,226
14,531
-2
%
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
37,356
$
38,294
-2
%
NIKE, Inc.
DIVISIONAL REVENUES
(Unaudited)
% Change Excluding Currency
Changes1
% Change Excluding Currency
Changes1
THREE MONTHS ENDED
%
NINE MONTHS ENDED
%
(Dollars in millions)
2/29/2024
2/28/2023
Change
2/29/2024
2/28/2023
Change
North America
Footwear
$
3,460
$
3,322
4
%
4
%
$
10,950
$
11,090
-1
%
-1
%
Apparel
1,408
1,419
-1
%
-1
%
4,555
4,598
-1
%
-1
%
Equipment
202
172
17
%
18
%
613
565
8
%
9
%
Total
5,070
4,913
3
%
3
%
16,118
16,253
-1
%
-1
%
Europe, Middle East &
Africa
Footwear
1,960
2,011
-3
%
-3
%
6,406
6,086
5
%
3
%
Apparel
994
1,094
-9
%
-10
%
3,331
3,528
-6
%
-8
%
Equipment
184
141
30
%
27
%
578
454
27
%
23
%
Total
3,138
3,246
-3
%
-4
%
10,315
10,068
2
%
0
%
Greater China
Footwear
1,547
1,496
3
%
5
%
4,195
4,099
2
%
6
%
Apparel
498
461
8
%
10
%
1,368
1,228
11
%
16
%
Equipment
39
37
5
%
9
%
119
111
7
%
11
%
Total
2,084
1,994
5
%
6
%
5,682
5,438
4
%
8
%
Asia Pacific & Latin
America
Footwear
1,195
1,141
5
%
5
%
3,639
3,313
10
%
9
%
Apparel
390
407
-4
%
-3
%
1,198
1,255
-5
%
-4
%
Equipment
62
53
17
%
19
%
187
167
12
%
12
%
Total
1,647
1,601
3
%
4
%
5,024
4,735
6
%
6
%
Global Brand Divisions2
9
12
-25
%
-22
%
34
44
-23
%
-24
%
TOTAL NIKE BRAND
11,948
11,766
2
%
2
%
37,173
36,538
2
%
2
%
Converse
495
612
-19
%
-20
%
1,602
1,841
-13
%
-14
%
Corporate3
(14
)
12
—
—
(19
)
13
—
—
TOTAL NIKE, INC. REVENUES
$
12,429
$
12,390
0
%
0
%
$
38,756
$
38,392
1
%
1
%
TOTAL NIKE BRAND
Footwear
$
8,162
$
7,970
2
%
3
%
$
25,190
$
24,588
2
%
2
%
Apparel
3,290
3,381
-3
%
-3
%
10,452
10,609
-1
%
-2
%
Equipment
487
403
21
%
20
%
1,497
1,297
15
%
14
%
Global Brand Divisions2
9
12
-25
%
-22
%
34
44
-23
%
-24
%
TOTAL NIKE BRAND REVENUES
$
11,948
$
11,766
2
%
2
%
$
37,173
$
36,538
2
%
2
%
1 The percent change has been calculated
using actual exchange rates in use during the comparative prior
year period and is provided to enhance the visibility of the
underlying business trends by excluding the impact of translation
arising from foreign currency exchange rate fluctuations, which is
considered a non-GAAP financial measure. Management uses this
non-GAAP financial measure when evaluating the Company's
performance, including when making financial and operating
decisions. Additionally, management believes this non-GAAP
financial measure provides investors with additional financial
information that should be considered when assessing the Company’s
underlying business performance and trends. References to this
measure should not be considered in isolation or as a substitute
for other financial measures calculated and presented in accordance
with U.S. GAAP and may not be comparable to similarly titled
non-GAAP measures used by other companies.
2 Global Brand Divisions revenues include
NIKE Brand licensing and other miscellaneous revenues that are not
part of a geographic operating segment.
3 Corporate revenues primarily consist of
foreign currency hedge gains and losses related to revenues
generated by entities within the NIKE Brand geographic operating
segments and Converse, but managed through the Company’s central
foreign exchange risk management program.
NIKE, Inc.
EARNINGS BEFORE INTEREST AND
TAXES1
(Unaudited)
THREE MONTHS ENDED
%
NINE MONTHS ENDED
%
(Dollars in millions)
2/29/2024
2/28/2023
Change
2/29/2024
2/28/2023
Change
North America
$
1,400
$
1,190
18
%
$
4,360
$
4,064
7
%
Europe, Middle East & Africa
734
785
-6
%
2,591
2,750
-6
%
Greater China
722
702
3
%
1,761
1,754
0
%
Asia Pacific & Latin America
471
485
-3
%
1,406
1,470
-4
%
Global Brand Divisions2
(1,199
)
(1,160
)
-3
%
(3,572
)
(3,573
)
0
%
TOTAL NIKE BRAND1
2,128
2,002
6
%
6,546
6,465
1
%
Converse
98
164
-40
%
380
526
-28
%
Corporate3
(874
)
(696
)
-26
%
(2,060
)
(2,014
)
-2
%
TOTAL NIKE, INC. EARNINGS BEFORE
INTEREST AND TAXES1
1,352
1,470
-8
%
4,866
4,977
-2
%
EBIT margin1
10.9
%
11.9
%
12.6
%
13.0
%
Interest expense (income), net
(52
)
(7
)
—
(108
)
22
—
TOTAL NIKE, INC. INCOME BEFORE INCOME
TAXES
$
1,404
$
1,477
-5
%
$
4,974
$
4,955
0
%
1 The Company evaluates the performance of
individual operating segments based on earnings before interest and
taxes (commonly referred to as "EBIT"), which represents Net income
before Interest expense (income), net and Income tax expense. Total
NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin are
considered non-GAAP financial measures. Management uses these
non-GAAP financial measures when evaluating the Company's
performance, including when making financial and operating
decisions. Additionally, management believes these non-GAAP
financial measures provide investors with additional financial
information that should be considered when assessing the Company’s
underlying business performance and trends. EBIT margin is
calculated as total NIKE, Inc. EBIT divided by total NIKE, Inc.
Revenues. References to EBIT and EBIT margin should not be
considered in isolation or as a substitute for other financial
measures calculated and presented in accordance with U.S. GAAP and
may not be comparable to similarly titled non-GAAP measures used by
other companies.
2 Global Brand Divisions primarily
represent demand creation and operating overhead expense, including
product creation and design expenses that are centrally managed for
the NIKE Brand, as well as costs associated with NIKE Direct global
digital operations and enterprise technology. Global Brand
Divisions revenues include NIKE Brand licensing and other
miscellaneous revenues that are not part of a geographic operating
segment.
3 Corporate consists primarily of
unallocated general and administrative expenses, including expenses
associated with centrally managed departments; depreciation and
amortization related to the Company’s corporate headquarters;
unallocated insurance, benefit and compensation programs, including
stock-based compensation; and certain foreign currency gains and
losses, including certain hedge gains and losses. For the three and
nine months ended February 29, 2024, Corporate includes the
restructuring charges, recognized as a result of the Company taking
steps to streamline the organization. These charges primarily
reflect employee severance costs.
NIKE, Inc.
DILUTED EARNINGS PER
SHARE
(Unaudited)
THREE MONTHS ENDED
NINE MONTHS ENDED
2/29/2024
2/29/2024
DILUTED EARNINGS PER SHARE
(GAAP):
$
0.77
$
2.74
Add: Restructuring charges
0.26
0.26
Tax effect of the restructuring
charges1
(0.05
)
(0.05
)
DILUTED EARNINGS PER SHARE EXCLUDING
RESTRUCTURING CHARGES (NON-GAAP)2:
$
0.98
$
2.95
1 Tax effect was determined by applying
the tax rate applicable to the specific item.
2 Diluted earnings per share excluding the
restructuring charges is a non-GAAP financial measure. The most
comparable GAAP measure is Diluted earnings per share. The Company
uses Diluted earnings per share excluding the restructuring charges
to facilitate the evaluation of the Company’s performance. The
Company believes that providing Diluted earnings per share
excluding the impacts of the restructuring charges is useful to
investors for comparability between periods and allows investors to
evaluate the impacts of the restructuring charges separately. For
the three and nine months ended February 28, 2023, there were no
material restructuring charges impacting comparability.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240321992075/en/
Investor Contact: Paul Trussell investor.relations@nike.com
Media Contact: Virginia Rustique-Petteni
media.relations@nike.com
Grafico Azioni Nike (NYSE:NKE)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Nike (NYSE:NKE)
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Da Mag 2023 a Mag 2024