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NIKE, Inc.

$NKE
$120.97
Капитализция: $128.6B
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NIKE, Inc. создает и реализует спортивную обувь, одежду, снаряжение и необходимые для спорта товары для детей, мужчин и женщин. NIKE, Inc. реализует продукцию через сеть своих собственных магазинов, а также показать больше
через сторонних ритейлеров и дистрибьюторов по всему миру. NIKE, Inc. была основана в 1969 году и является корпорацией, учрежденной в соответствии с законодательством штата Орегон.
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories, including running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling, and other outdoor activities and apparel with licensed college and professional team and league logos, as well as sells sports apparel. In addition, the company sells a line of performance equipment and accessories comprising bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities and various plastic products to other manufacturers. Further, it provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks and action sports and youth lifestyle apparel and accessories under the Hurley trademark. Additionally, the company licenses agreements that permit unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores sporting goods stores athletic specialty stores department stores skate, tennis, and golf shops and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
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NIKE, Inc. Reports Fiscal 2022 Fourth Quarter and Full Year Results

NIKE, Inc. сообщает результаты за четвертый финансовый квартал 2022 финансового года и результаты за весь год

27 июн. 2022 г.

BEAVERTON, Ore.--(BUSINESS WIRE)--NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal 2022 fourth quarter and full year ended May 31, 2022.

  • Fourth quarter reported revenues were $12.2 billion, down 1 percent compared to prior year and up 3 percent on a currency-neutral basis*
  • NIKE Direct reported revenues for the fourth quarter were $4.8 billion, up 7 percent compared to prior year and up 11 percent on a currency-neutral basis
  • Wholesale reported revenues for the fourth quarter were $6.8 billion, down 7 percent compared to prior year and down 3 percent on a currency-neutral basis
  • Gross margin for the fourth quarter decreased 80 basis points to 45 percent.
  • Diluted earnings per share was $0.90 for the fourth quarter
  • The Company announced its Board of Directors has authorized a new four-year, $18 billion program to repurchase shares of NIKE's Class B Common Stock

“NIKE’s results this fiscal year are a testament to the unmatched strength of our brands and our deep connection with consumers," said John Donahoe, President and CEO, NIKE, Inc. “Our competitive advantages, including our pipeline of innovative product and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport."**

Fourth quarter NIKE Direct revenues grew 7 percent on a reported basis and 11 percent on a currency-neutral basis, led by 25 percent growth in EMEA, 43 percent growth in APLA and 5 percent growth in North America, partially offset by a decline in Greater China. NIKE Brand Digital grew 15 percent on a reported basis and 18 percent on a currency-neutral basis, driven by double digit growth in APLA, North America and EMEA. NIKE-owned stores declined 2 percent on a reported basis and increased 1 percent on a currency-neutral basis.

“In this dynamic environment, NIKE's unrivaled strengths continue to fuel our momentum,” said Matt Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. "Two years into executing our Consumer Direct Acceleration, we are better positioned than ever to drive long-term growth while serving consumers directly at scale."**

Non-recurring Items Impacting Comparability in the Fourth Quarter

Fourth quarter results contain several non-comparable items, including non-recurring charges recorded in Other (income) expense, net, totaling approximately $150 million, associated with the deconsolidation of our Russian operations, and the transition of our businesses in Argentina, Chile and Uruguay to strategic distributor models.

Fourth Quarter Income Statement Review

  • Revenues for NIKE, Inc. decreased 1 percent to $12.2 billion compared to the prior year and were up 3 percent on a currency-neutral basis.
    • Revenues for the NIKE Brand were $11.7 billion, down 1 percent on a reported basis and up 3 percent on a currency-neutral basis, led by 20 percent growth in EMEA.
    • Revenues for Converse were $593 million, down 1 percent on a reported basis and up 3 percent on a currency-neutral basis, due to wholesale revenue declines offset by growth in our direct to consumer business.
  • Gross margin decreased 80 basis points to 45.0 percent, primarily due to higher inventory obsolescence reserves in Greater China and elevated freight and logistics costs, partially offset by strategic pricing actions, favorable changes in net foreign currency exchange rates, including hedges, and margin expansion in our NIKE Direct business.
  • Selling and administrative expense increased 8 percent to $4.0 billion.
    • Demand creation expense was $1.1 billion, up 6 percent, primarily due to increased sports marketing expenses and continued investments in digital marketing to support heightened digital demand.
    • Operating overhead expense increased 8 percent to $3.0 billion, due to higher strategic technology investments, and an increase in NIKE Direct variable costs and wage-related expenses.
  • The effective tax rate was (4.7) percent compared to 18.6 percent for the same period last year, due to a shift in our earnings mix and a non-cash, one-time benefit related to the onshoring of our non-U.S. intangible property.
  • Net income was $1.4 billion, down 5 percent, and Diluted earnings per share was $0.90, down 3 percent compared to prior year.

Fiscal 2022 Income Statement Review

  • Revenues for NIKE, Inc. increased 5 percent to $46.7 billion, up 6 percent on a currency-neutral basis.
    • Revenues for the NIKE Brand were $44.4 billion, up 5 percent on a reported basis and 6 percent on a currency-neutral basis, driven by double-digit growth in NIKE Direct, partially offset by slight declines in wholesale revenues.
    • NIKE Direct revenues were $18.7 billion, up 14 percent on a reported basis and up 15 percent on a currency-neutral basis, led by NIKE Brand digital growth of 18 percent and NIKE-owned stores were up 10 percent.
    • Revenues for Converse were $2.3 billion, up 6 percent on a reported basis and up 7 percent on a currency-neutral basis, led by double-digit growth in our direct to consumer business, partially offset by lower wholesale revenues.
  • Gross margin increased 120 basis points to 46.0 percent, primarily due to margin expansion in our NIKE Direct business, a higher mix of full-price sales and favorable changes in net foreign currency exchange rates, including hedges, partially offset by elevated freight and logistics costs and higher inventory obsolescence reserves in Greater China in the fourth quarter.
  • Selling and administrative expense increased 14 percent to $14.8 billion.
    • Demand creation expense was $3.9 billion, up 24 percent compared to prior year, primarily due to normalization of spend against brand campaigns and continued investments in digital marketing to support heightened digital demand.
    • Operating overhead expense increased 11 percent to $11.0 billion due to higher strategic technology investments, and an increase in wage-related expenses and NIKE Direct variable costs.
  • The effective tax rate was 9.1 percent, compared to 14.0 percent for the same period last year, due to a shift in our earnings mix and a non-cash, one-time benefit related to the onshoring of our non-U.S. intangible property.
  • Net income was $6.0 billion, up 6 percent, and Diluted earnings per share was $3.75, up 5 percent compared to prior year.

May 31, 2022 Balance Sheet Review

  • Inventories for NIKE, Inc. were $8.4 billion, up 23 percent compared to the prior year period, driven by elevated in-transit inventories due to extended lead times from ongoing supply chain disruptions, partially offset by strong consumer demand.
  • Cash and equivalents and short-term investments were $13.0 billion, $479 million lower than prior year, as free cash flow was offset by share repurchases and dividends.

Shareholder Returns

NIKE continues to have a strong track record of investing to fuel growth and consistently increasing returns to shareholders, including 20 consecutive years of increasing dividend payouts.

In the fourth quarter, the Company returned approximately $1.5 billion to shareholders, including:

  • Dividends of $481 million, up 11 percent from prior year.
  • Share repurchases of $1.1 billion, reflecting 8.5 million shares retired as part of the four-year, $15 billion program approved by the Board of Directors in June 2018.

In fiscal 2022, the Company returned approximately $5.8 billion to shareholders, including:

  • Dividends of $1.8 billion, up 12 percent from prior year.
  • Share repurchases of $4.0 billion, reflecting 27.3 million shares retired. As of May 31, 2022, a total of 77.4 million shares for $8.7 billion had been repurchased under the current program.

In June 2022, the Board of Directors authorized a new four-year, $18 billion program to repurchase shares of NIKE's Class B common stock. The Company's new program will replace the current $15 billion share repurchase program, which will be terminated in fiscal year 2023. Repurchases under the Company's new program will be made in open market or privately negotiated transactions in compliance with the Securities and Exchange Commission Rule 10b-18, subject to market conditions, applicable legal requirements and other relevant factors. The new share repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended at any time at the Company's discretion.

Conference Call

NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on June 27, 2022, to review fiscal fourth quarter and full year results. The conference call will be broadcast live via the Internet and can be accessed at http://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through 9:00 p.m. PT, July 15, 2022.

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 http://investors.nike.com. Individuals can also visit http://news.nike.com and follow @NIKE.

*

See additional information in the accompanying Divisional Revenues table or the Supplemental NIKE Brand Revenue table regarding this non-GAAP financial measure.

**

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

%

TWELVE MONTHS ENDED

%

(In millions, except per share data)

5/31/2022

5/31/2021

Change

5/31/2022

5/31/2021

Change

Revenues

$

12,234

 

$

12,344

 

-1

%

$

46,710

 

$

44,538

 

5

%

Cost of sales

 

6,731

 

 

6,689

 

1

%

 

25,231

 

 

24,576

 

3

%

Gross profit

 

5,503

 

 

5,655

 

-3

%

 

21,479

 

 

19,962

 

8

%

Gross margin

 

45.0

%

 

45.8

%

 

 

46.0

%

 

44.8

%

 

 

 

 

 

 

 

 

Demand creation expense

 

1,061

 

 

997

 

6

%

 

3,850

 

 

3,114

 

24

%

Operating overhead expense

 

2,974

 

 

2,745

 

8

%

 

10,954

 

 

9,911

 

11

%

Total selling and administrative expense

 

4,035

 

 

3,742

 

8

%

 

14,804

 

 

13,025

 

14

%

% of revenues

 

33.0

%

 

30.3

%

 

 

31.7

%

 

29.2

%

 

 

 

 

 

 

 

 

Interest expense (income), net

 

40

 

 

63

 

 

 

205

 

 

262

 

 

Other (income) expense, net

 

54

 

 

(4

)

 

 

(181

)

 

14

 

 

Income before income taxes

 

1,374

 

 

1,854

 

-26

%

 

6,651

 

 

6,661

 

0

%

Income tax (benefit) expense

 

(65

)

 

345

 

-119

%

 

605

 

 

934

 

-35

%

Effective tax rate

 

(4.7

) %

 

18.6

%

 

 

9.1

%

 

14.0

%

 

 

 

 

 

 

 

 

NET INCOME

$

1,439

 

$

1,509

 

-5

%

$

6,046

 

$

5,727

 

6

%

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

Basic

$

0.91

 

$

0.96

 

-5

%

$

3.83

 

$

3.64

 

5

%

Diluted

$

0.90

 

$

0.93

 

-3

%

$

3.75

 

$

3.56

 

5

%

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

Basic

 

1,572.0

 

 

1,579.0

 

 

 

1,578.8

 

 

1,573.0

 

 

Diluted

 

1,595.0

 

 

1,614.9

 

 

 

1,610.8

 

 

1,609.4

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.305

 

$

0.275

 

 

$

1.190

 

$

1.070

 

 

NIKE, Inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

May 31,

May 31,

% Change

(Dollars in millions)

2022

2021

ASSETS

 

 

 

Current assets:

 

 

 

Cash and equivalents

$

8,574

$

9,889

-13

%

Short-term investments

 

4,423

 

3,587

23

%

Accounts receivable, net

 

4,667

 

4,463

5

%

Inventories

 

8,420

 

6,854

23

%

Prepaid expenses and other current assets

 

2,129

 

1,498

42

%

Total current assets

 

28,213

 

26,291

7

%

Property, plant and equipment, net

 

4,791

 

4,904

-2

%

Operating lease right-of-use assets, net

 

2,926

 

3,113

-6

%

Identifiable intangible assets, net

 

286

 

269

6

%

Goodwill

 

284

 

242

17

%

Deferred income taxes and other assets

 

3,821

 

2,921

31

%

TOTAL ASSETS

$

40,321

$

37,740

7

%

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

500

$

 

Notes payable

 

10

 

2

400

%

Accounts payable

 

3,358

 

2,836

18

%

Current portion of operating lease liabilities

 

420

 

467

-10

%

Accrued liabilities

 

6,220

 

6,063

3

%

Income taxes payable

 

222

 

306

-27

%

Total current liabilities

 

10,730

 

9,674

11

%

Long-term debt

 

8,920

 

9,413

-5

%

Operating lease liabilities

 

2,777

 

2,931

-5

%

Deferred income taxes and other liabilities

 

2,613

 

2,955

-12

%

Redeemable preferred stock

 

 

 

Shareholders’ equity

 

15,281

 

12,767

20

%

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY

$

40,321

$

37,740

7

%

NIKE, Inc.

DIVISIONAL REVENUES

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change
Excluding
Currency
Changes1

 

 

 

% Change
Excluding
Currency
Changes1

 

THREE MONTHS ENDED

%

TWELVE MONTHS ENDED

%

(Dollars in millions)

5/31/2022

5/31/2021

Change

5/31/2022

5/31/2021

Change

North America

 

 

 

 

 

 

 

 

Footwear

$

3,580

 

$

3,793

 

-6

%

-6

%

$

12,228

 

$

11,644

5

%

5

%

Apparel

 

1,375

 

 

1,448

 

-5

%

-5

%

 

5,492

 

 

5,028

9

%

9

%

Equipment

 

160

 

 

143

 

12

%

12

%

 

633

 

 

507

25

%

25

%

Total

 

5,115

 

 

5,384

 

-5

%

-5

%

 

18,353

 

 

17,179

7

%

7

%

Europe, Middle East & Africa

 

 

 

 

 

 

 

 

Footwear

 

2,030

 

 

1,831

 

11

%

22

%

 

7,388

 

 

6,970

6

%

9

%

Apparel

 

1,083

 

 

1,023

 

6

%

16

%

 

4,527

 

 

3,996

13

%

16

%

Equipment

 

138

 

 

125

 

10

%

20

%

 

564

 

 

490

15

%

17

%

Total

 

3,251

 

 

2,979

 

9

%

20

%

 

12,479

 

 

11,456

9

%

12

%

Greater China

 

 

 

 

 

 

 

 

Footwear

 

1,178

 

 

1,316

 

-10

%

-12

%

 

5,416

 

 

5,748

-6

%

-10

%

Apparel

 

350

 

 

572

 

-39

%

-40

%

 

1,938

 

 

2,347

-17

%

-21

%

Equipment

 

33

 

 

45

 

-27

%

-28

%

 

193

 

 

195

-1

%

-6

%

Total

 

1,561

 

 

1,933

 

-19

%

-20

%

 

7,547

 

 

8,290

-9

%

-13

%

Asia Pacific & Latin America

 

 

 

 

 

 

 

 

Footwear

 

1,197

 

 

1,007

 

19

%

28

%

 

4,111

 

 

3,659

12

%

17

%

Apparel

 

429

 

 

396

 

8

%

16

%

 

1,610

 

 

1,494

8

%

12

%

Equipment

 

56

 

 

55

 

2

%

9

%

 

234

 

 

190

23

%

28

%

Total

 

1,682

 

 

1,458

 

15

%

24

%

 

5,955

 

 

5,343

11

%

16

%

Global Brand Divisions2

 

48

 

 

7

 

586

%

524

%

 

102

 

 

25

308

%

302

%

TOTAL NIKE BRAND

 

11,657

 

 

11,761

 

-1

%

3

%

 

44,436

 

 

42,293

5

%

6

%

Converse

 

593

 

 

596

 

-1

%

3

%

 

2,346

 

 

2,205

6

%

7

%

Corporate3

 

(16

)

 

(13

)

 

 

 

(72

)

 

40

 

 

TOTAL NIKE, INC. REVENUES

$

12,234

 

$

12,344

 

-1

%

3

%

$

46,710

 

$

44,538

5

%

6

%

 

 

 

 

 

 

 

 

 

TOTAL NIKE BRAND

 

 

 

 

 

 

 

 

Footwear

$

7,985

 

$

7,947

 

0

%

4

%

$

29,143

 

$

28,021

4

%

4

%

Apparel

 

3,237

 

 

3,439

 

-6

%

-2

%

 

13,567

 

 

12,865

5

%

6

%

Equipment

 

387

 

 

368

 

5

%

10

%

 

1,624

 

 

1,382

18

%

18

%

Global Brand Divisions2

 

48

 

 

7

 

586

%

524

%

 

102

 

 

25

308

%

302

%

TOTAL NIKE BRAND REVENUES

$

11,657

 

$

11,761

 

-1

%

3

%

$

44,436

 

$

42,293

5

%

6

%

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.

SUPPLEMENTAL NIKE BRAND REVENUE DETAILS

(Unaudited)

 

 

 

 

% Change
Excluding
Currency
Changes1

 

 

 

 

 

TWELVE MONTHS ENDED

%

(Dollars in millions)

5/31/2022

5/31/2021

Change

NIKE Brand Revenues by:

 

 

 

 

Sales to Wholesale Customers

$

25,608

 

$

25,898

 

-1

%

-1

%

Sales through NIKE Direct

 

18,726

 

 

16,370

 

14

%

15

%

Global Brand Divisions2

 

102

 

 

25

 

308

%

302

%

TOTAL NIKE BRAND REVENUES

$

44,436

 

$

42,293

 

5

%

6

%

 

 

 

 

 

NIKE Brand Revenues on a Wholesale Equivalent Basis:3

 

 

 

 

Sales to Wholesale Customers

$

25,608

 

$

25,898

 

-1

%

-1

%

Sales from our Wholesale Operations to NIKE Direct Operations

 

10,543

 

 

9,872

 

7

%

7

%

TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES

$

36,151

 

$

35,770

 

1

%

1

%

 

 

 

 

 

NIKE Brand Wholesale Equivalent Revenues by:3,4

 

 

 

 

Men’s

$

18,797

 

$

18,391

 

2

%

3

%

Women’s

 

8,273

 

 

8,225

 

1

%

1

%

NIKE Kids’

 

4,874

 

 

4,882

 

0

%

0

%

Jordan Brand

 

5,122

 

 

4,780

 

7

%

7

%

Others5

 

(915

)

 

(508

)

-80

%

-79

%

TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES

$

36,151

 

$

35,770

 

1

%

1

%

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 References to NIKE Brand wholesale equivalent revenues, which are considered non-GAAP financial measures, are intended to provide context as to the total size of the Company’s NIKE Brand market footprint if it had no NIKE Direct operations. NIKE Brand wholesale equivalent revenues consist of 1) sales to external wholesale customers and 2) internal sales from the Company’s wholesale operations to its NIKE Direct operations which are charged at prices comparable to those charged to external wholesale customers. 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.

4 As a result of the Consumer Direct Acceleration strategy, announced in fiscal 2021, the Company is now organized around a new consumer construct of Men's, Women's and Kids'. Beginning in the first quarter of fiscal 2022, unisex products are classified within Men's, and Jordan Brand revenues are separately reported. Certain prior year amounts have been reclassified to conform to fiscal 2022 presentation. These changes had no impact on previously reported consolidated results of operations or shareholders' equity. For additional information about the Consumer Direct Acceleration refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations within the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2021.

5 Others include products not allocated to Men’s, Women’s, NIKE Kids’ and Jordan Brand, as well as certain adjustments that are not allocated to products designated by consumer.

NIKE, Inc.

EARNINGS BEFORE INTEREST AND TAXES1

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED

%

TWELVE MONTHS ENDED

%

(Dollars in millions)

5/31/2022

5/31/2021

Change

5/31/2022

5/31/2021

Change

North America

$

1,478

 

$

1,794

 

-18

%

$

5,114

 

$

5,089

 

0

%

Europe, Middle East & Africa

 

899

 

 

550

 

63

%

 

3,293

 

 

2,435

 

35

%

Greater China

 

311

 

 

691

 

-55

%

 

2,365

 

 

3,243

 

-27

%

Asia Pacific & Latin America

 

549

 

 

418

 

31

%

 

1,896

 

 

1,530

 

24

%

Global Brand Divisions2

 

(1,229

)

 

(1,110

)

-11

%

 

(4,262

)

 

(3,656

)

-17

%

TOTAL NIKE BRAND1

 

2,008

 

 

2,343

 

-14

%

 

8,406

 

 

8,641

 

-3

%

Converse

 

165

 

 

138

 

20

%

 

669

 

 

543

 

23

%

Corporate3

 

(759

)

 

(564

)

-35

%

 

(2,219

)

 

(2,261

)

2

%

TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES1

 

1,414

 

 

1,917

 

-26

%

 

6,856

 

 

6,923

 

-1

%

EBIT margin1

 

11.6

%

 

15.5

%

 

 

14.7

%

 

15.5

%

 

Interest expense (income), net

 

40

 

 

63

 

 

 

205

 

 

262

 

 

TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES

$

1,374

 

$

1,854

 

-26

%

$

6,651

 

$

6,661

 

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 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.

БИВЕРТОН, ОРЕГОН.--(BUSINESS WIRE)--NIKE, Inc. (NYSE:NKE) сегодня сообщила о финансовых результатах за четвертый квартал 2022 финансового года и за весь год, закончившийся 31 мая 2022 года.

  • Выручка в четвертом квартале составила 12,2 миллиарда долларов, что на 1 процент меньше, чем в предыдущем году, и на 3 процента больше на валютно-нейтральной основе*
  • Выручка NIKE Direct за четвертый квартал составила 4,8 миллиарда долларов, что на 7 процентов больше по сравнению с предыдущим годом и на 11 процентов выше на валютно-нейтральной основе
  • Выручка оптовой торговли за четвертый квартал составила 6,8 миллиарда долларов, что на 7 процентов меньше по сравнению с предыдущим годом и на 3 процента меньше на валютно-нейтральной основе
  • Валовая прибыль за четвертый квартал снизилась на 80 базисных пунктов до 45 процентов.
  • Разводненная прибыль на акцию в четвертом квартале составила $0,90
  • Компания объявила, что ее Совет директоров одобрил новую четырехлетнюю программу на сумму 18 миллиардов долларов для выкупа обыкновенных акций NIKE класса B.

“Результаты NIKE в этом финансовом году являются свидетельством непревзойденной силы наших брендов и нашей глубокой связи с потребителями", - сказал Джон Донахью, президент и главный исполнительный директор NIKE, Inc. “Наши конкурентные преимущества, в том числе линейка инновационных продуктов и расширяющееся цифровое лидерство, доказывают, что наша стратегия работает, поскольку мы создаем ценность благодаря нашему неустанному стремлению служить будущему спорта".**

Прямые доходы NIKE в четвертом квартале выросли на 7 процентов в отчетном периоде и на 11 процентов в зависимости от валюты, чему способствовал 25-процентный рост в регионе EMEA, 43-процентный рост в APLA и 5-процентный рост в Северной Америке, частично компенсированный снижением в Большом Китае. Цифровой бренд NIKE вырос на 15% в отчетном периоде и на 18% в зависимости от валюты, что обусловлено двузначным ростом в APLA, Северной Америке и регионе EMEA. Магазины, принадлежащие NIKE, сократились на 2 процента на отчетной основе и выросли на 1 процент на валютно-нейтральной основе.

“В этой динамичной среде непревзойденные сильные стороны NIKE продолжают подпитывать наш импульс”, - сказал Мэтт Френд, исполнительный вице-президент и финансовый директор NIKE, Inc. "Спустя два года после реализации программы прямого ускорения для потребителей мы находимся в лучшем положении, чем когда-либо, для обеспечения долгосрочного роста, одновременно обслуживая потребителей напрямую в масштабе".**

Разовые статьи, влияющие на сопоставимость в Четвертом квартале

Результаты четвертого квартала содержат несколько несопоставимых статей, включая единовременные расходы, отраженные в составе прочих (доходов) расходов, нетто, на общую сумму около 150 миллионов долларов США, связанные с деконсолидацией наших российских операций и переходом наших предприятий в Аргентине, Чили и Уругвае на стратегические модели дистрибьюторов.

Обзор Отчета о прибылях и убытках за Четвертый квартал

  • Выручка NIKE, Inc. снизилась на 1 процент до 12,2 миллиарда долларов по сравнению с предыдущим годом и выросла на 3 процента без учета валютных колебаний.
    • Выручка бренда NIKE составила 11,7 миллиарда долларов, снизившись на 1 процент по сравнению с отчетным периодом и увеличившись на 3 процента в зависимости от валюты, чему способствовал 20-процентный рост в регионе EMEA.
    • Выручка Converse составила 593 миллиона долларов, снизившись на 1 процент по сравнению с отчетным периодом и увеличившись на 3 процента без учета валютных колебаний из-за снижения выручки от оптовой торговли, компенсированного ростом нашего бизнеса прямых продаж потребителям.
  • Валовая прибыль снизилась на 80 базисных пунктов до 45,0%, в основном из-за увеличения запасов на случай устаревания в Большом Китае и увеличения расходов на перевозку и логистику, что частично компенсировалось стратегическими действиями по ценообразованию, благоприятными изменениями чистых обменных курсов иностранных валют, включая хеджирование, и увеличением маржи в нашем бизнесе NIKE Direct.
  • Коммерческие и административные расходы увеличились на 8 процентов и составили 4,0 миллиарда долларов.
    • Расходы на создание спроса составили 1,1 миллиарда долларов, увеличившись на 6 процентов, в основном за счет увеличения расходов на спортивный маркетинг и продолжающихся инвестиций в цифровой маркетинг для поддержки повышенного цифрового спроса.
    • Операционные накладные расходы увеличились на 8 процентов до 3,0 миллиарда долларов США из-за увеличения стратегических инвестиций в технологии и увеличения прямых переменных затрат NIKE и расходов, связанных с заработной платой.
  • Эффективная налоговая ставка составила (4,7) процента по сравнению с 18,6 процента за аналогичный период прошлого года, что связано с изменением структуры наших доходов и неденежной единовременной выгодой, связанной с приобретением нашей нематериальной собственности за пределами США.
  • Чистая прибыль составила 1,4 миллиарда долларов, снизившись на 5 процентов, а разводненная прибыль на акцию составила 0,90 доллара, снизившись на 3 процента по сравнению с предыдущим годом.

Обзор Отчета о прибылях и убытках за 2022 финансовый год

  • Выручка NIKE, Inc. увеличилась на 5 процентов до 46,7 миллиарда долларов, увеличившись на 6 процентов без учета валютных колебаний.
    • Выручка бренда NIKE составила 44,4 миллиарда долларов, увеличившись на 5 процентов по сравнению с отчетным периодом и на 6 процентов в зависимости от валюты, что обусловлено двузначным ростом продаж NIKE Direct, частично компенсированным небольшим снижением доходов от оптовой торговли.
    • Прямые доходы NIKE составили 18,7 миллиарда долларов, увеличившись на 14 процентов по сравнению с отчетным периодом и на 15 процентов в зависимости от валюты, что обусловлено ростом цифрового бренда NIKE на 18 процентов, а магазины, принадлежащие NIKE, выросли на 10 процентов.
    • Выручка Converse составила 2,3 миллиарда долларов, увеличившись на 6 процентов по сравнению с отчетным периодом и на 7 процентов без учета валютных колебаний, что обусловлено двузначным ростом нашего бизнеса прямых продаж потребителям, частично компенсированным снижением доходов от оптовой торговли.
  • Валовая прибыль увеличилась на 120 базисных пунктов до 46,0%, в основном за счет увеличения маржи в нашем бизнесе NIKE Direct, более широкого сочетания продаж по полной цене и благоприятных изменений в чистых обменных курсах иностранной валюты, включая хеджирование, частично компенсированное повышенными затратами на перевозку и логистику и более высокими запасами устаревших запасов в Большом Китае в четвертая четверть.
  • Коммерческие и административные расходы увеличились на 14 процентов и составили 14,8 миллиарда долларов.
    • Расходы на создание спроса составили 3,9 миллиарда долларов, что на 24 процента больше по сравнению с предыдущим годом, в основном из-за нормализации расходов на кампании брендов и продолжающихся инвестиций в цифровой маркетинг для поддержки повышенного цифрового спроса.
    • Операционные накладные расходы увеличились на 11 процентов до 11,0 миллиардов долларов США из-за увеличения стратегических инвестиций в технологии, а также увеличения расходов, связанных с заработной платой, и прямых переменных затрат NIKE.
  • Эффективная налоговая ставка составила 9,1 процента по сравнению с 14,0 процента за аналогичный период прошлого года из-за изменения структуры наших доходов и неденежной единовременной выгоды, связанной с передачей нашей нематериальной собственности за пределами США.
  • Чистая прибыль составила $6,0 млрд, увеличившись на 6%, а разводненная прибыль на акцию составила $3,75, увеличившись на 5% по сравнению с предыдущим годом.

Обзор баланса 31 мая 2022 года

  • Запасы NIKE, Inc. составили 8,4 миллиарда долларов, что на 23 процента больше по сравнению с предыдущим годом, что обусловлено увеличением запасов в пути из-за увеличения сроков поставки из-за продолжающихся сбоев в цепочке поставок, частично компенсируемых высоким потребительским спросом.
  • Денежные средства и их эквиваленты, а также краткосрочные инвестиции составили 13,0 млрд долларов, что на 479 млн долларов меньше, чем в предыдущем году, поскольку свободный денежный поток был компенсирован выкупом акций и дивидендами.

Доходы акционеров

NIKE по-прежнему имеет солидный послужной список инвестиций для стимулирования роста и постоянного увеличения прибыли для акционеров, включая 20 лет подряд увеличивающиеся выплаты дивидендов.

В четвертом квартале Компания вернула акционерам около 1,5 миллиарда долларов, в том числе:

  • Дивиденды составили 481 миллион долларов, что на 11 процентов больше, чем в предыдущем году.
  • Выкуп акций на сумму 1,1 миллиарда долларов, отражающий выбытие 8,5 миллионов акций в рамках четырехлетней программы стоимостью 15 миллиардов долларов, одобренной Советом директоров в июне 2018 года.

В 2022 финансовом году Компания вернула акционерам около 5,8 миллиарда долларов, в том числе:

  • Дивиденды составили 1,8 миллиарда долларов, что на 12 процентов больше, чем в предыдущем году.
  • Выкуп акций на сумму 4,0 миллиарда долларов, что отражает выбытие 27,3 миллиона акций. По состоянию на 31 мая 2022 года в рамках текущей программы было выкуплено в общей сложности 77,4 миллиона акций на сумму 8,7 миллиарда долларов.

В июне 2022 года Совет директоров утвердил новую четырехлетнюю программу выкупа обыкновенных акций NIKE класса B стоимостью 18 миллиардов долларов. Новая программа Компании заменит текущую программу обратного выкупа акций на сумму 15 миллиардов долларов, которая будет прекращена в 2023 финансовом году. Выкуп акций в рамках новой программы Компании будет осуществляться на открытом рынке или путем частных сделок в соответствии с Правилом 10b-18 Комиссии по ценным бумагам и биржам, с учетом рыночных условий, применимых правовых требований и других соответствующих факторов. Новая программа обратного выкупа акций не обязывает Компанию приобретать какое-либо конкретное количество обыкновенных акций, и она может быть приостановлена в любое время по усмотрению Компании.

Конференц-связь

Руководство NIKE, Inc. проведет телефонную конференцию, которая начнется примерно в 14:00 по североамериканскому времени 27 июня 2022 года, для рассмотрения результатов четвертого финансового квартала и всего года. Конференц-связь будет транслироваться в прямом эфире через Интернет, и доступ к ней можно получить по адресу http://investors .NIKE.com . Для тех, кто не сможет прослушать прямую трансляцию, архивная версия будет доступна в том же месте до 9:00 вечера по североамериканскому времени 15 июля 2022 года.

О компании NIKE, Inc.

NIKE, Inc., базирующаяся недалеко от Бивертона, штат Орегон, является ведущим мировым дизайнером, маркетологом и дистрибьютором аутентичной спортивной обуви, одежды, оборудования и аксессуаров для широкого спектра занятий спортом и фитнесом. Converse, дочерний бренд NIKE, Inc., полностью принадлежащий NIKE, разрабатывает, продает и распространяет обувь, одежду и аксессуары для спортивного образа жизни. Для получения дополнительной информации, отчеты о доходах NIKE, Inc. и другая финансовая информация доступны в Интернете по адресу http://investors .NIKE.com . Частные лица также могут посетить http://news .NIKE.com и подписывайтесь на @NIKE.

*

See additional information in the accompanying Divisional Revenues table or the Supplemental NIKE Brand Revenue table regarding this non-GAAP financial measure.

**

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

%

TWELVE MONTHS ENDED

%

(In millions, except per share data)

5/31/2022

5/31/2021

Change

5/31/2022

5/31/2021

Change

Revenues

$

12,234

 

$

12,344

 

-1

%

$

46,710

 

$

44,538

 

5

%

Cost of sales

 

6,731

 

 

6,689

 

1

%

 

25,231

 

 

24,576

 

3

%

Gross profit

 

5,503

 

 

5,655

 

-3

%

 

21,479

 

 

19,962

 

8

%

Gross margin

 

45.0

%

 

45.8

%

 

 

46.0

%

 

44.8

%

 

 

 

 

 

 

 

 

Demand creation expense

 

1,061

 

 

997

 

6

%

 

3,850

 

 

3,114

 

24

%

Operating overhead expense

 

2,974

 

 

2,745

 

8

%

 

10,954

 

 

9,911

 

11

%

Total selling and administrative expense

 

4,035

 

 

3,742

 

8

%

 

14,804

 

 

13,025

 

14

%

% of revenues

 

33.0

%

 

30.3

%

 

 

31.7

%

 

29.2

%

 

 

 

 

 

 

 

 

Interest expense (income), net

 

40

 

 

63

 

 

 

205

 

 

262

 

 

Other (income) expense, net

 

54

 

 

(4

)

 

 

(181

)

 

14

 

 

Income before income taxes

 

1,374

 

 

1,854

 

-26

%

 

6,651

 

 

6,661

 

0

%

Income tax (benefit) expense

 

(65

)

 

345

 

-119

%

 

605

 

 

934

 

-35

%

Effective tax rate

 

(4.7

) %

 

18.6

%

 

 

9.1

%

 

14.0

%

 

 

 

 

 

 

 

 

NET INCOME

$

1,439

 

$

1,509

 

-5

%

$

6,046

 

$

5,727

 

6

%

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

Basic

$

0.91

 

$

0.96

 

-5

%

$

3.83

 

$

3.64

 

5

%

Diluted

$

0.90

 

$

0.93

 

-3

%

$

3.75

 

$

3.56

 

5

%

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

Basic

 

1,572.0

 

 

1,579.0

 

 

 

1,578.8

 

 

1,573.0

 

 

Diluted

 

1,595.0

 

 

1,614.9

 

 

 

1,610.8

 

 

1,609.4

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.305

 

$

0.275

 

 

$

1.190

 

$

1.070

 

 

NIKE, Inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

May 31,

May 31,

% Change

(Dollars in millions)

2022

2021

ASSETS

 

 

 

Current assets:

 

 

 

Cash and equivalents

$

8,574

$

9,889

-13

%

Short-term investments

 

4,423

 

3,587

23

%

Accounts receivable, net

 

4,667

 

4,463

5

%

Inventories

 

8,420

 

6,854

23

%

Prepaid expenses and other current assets

 

2,129

 

1,498

42

%

Total current assets

 

28,213

 

26,291

7

%

Property, plant and equipment, net

 

4,791

 

4,904

-2

%

Operating lease right-of-use assets, net

 

2,926

 

3,113

-6

%

Identifiable intangible assets, net

 

286

 

269

6

%

Goodwill

 

284

 

242

17

%

Deferred income taxes and other assets

 

3,821

 

2,921

31

%

TOTAL ASSETS

$

40,321

$

37,740

7

%

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

500

$

 

Notes payable

 

10

 

2

400

%

Accounts payable

 

3,358

 

2,836

18

%

Current portion of operating lease liabilities

 

420

 

467

-10

%

Accrued liabilities

 

6,220

 

6,063

3

%

Income taxes payable

 

222

 

306

-27

%

Total current liabilities

 

10,730

 

9,674

11

%

Long-term debt

 

8,920

 

9,413

-5

%

Operating lease liabilities

 

2,777

 

2,931

-5

%

Deferred income taxes and other liabilities

 

2,613

 

2,955

-12

%

Redeemable preferred stock

 

 

 

Shareholders’ equity

 

15,281

 

12,767

20

%

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY

$

40,321

$

37,740

7

%

NIKE, Inc.

DIVISIONAL REVENUES

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change
Excluding
Currency
Changes1

 

 

 

% Change
Excluding
Currency
Changes1

 

THREE MONTHS ENDED

%

TWELVE MONTHS ENDED

%

(Dollars in millions)

5/31/2022

5/31/2021

Change

5/31/2022

5/31/2021

Change

North America

 

 

 

 

 

 

 

 

Footwear

$

3,580

 

$

3,793

 

-6

%

-6

%

$

12,228

 

$

11,644

5

%

5

%

Apparel

 

1,375

 

 

1,448

 

-5

%

-5

%

 

5,492

 

 

5,028

9

%

9

%

Equipment

 

160

 

 

143

 

12

%

12

%

 

633

 

 

507

25

%

25

%

Total

 

5,115

 

 

5,384

 

-5

%

-5

%

 

18,353

 

 

17,179

7

%

7

%

Europe, Middle East & Africa

 

 

 

 

 

 

 

 

Footwear

 

2,030

 

 

1,831

 

11

%

22

%

 

7,388

 

 

6,970

6

%

9

%

Apparel

 

1,083

 

 

1,023

 

6

%

16

%

 

4,527

 

 

3,996

13

%

16

%

Equipment

 

138

 

 

125

 

10

%

20

%

 

564

 

 

490

15

%

17

%

Total

 

3,251

 

 

2,979

 

9

%

20

%

 

12,479

 

 

11,456

9

%

12

%

Greater China

 

 

 

 

 

 

 

 

Footwear

 

1,178

 

 

1,316

 

-10

%

-12

%

 

5,416

 

 

5,748

-6

%

-10

%

Apparel

 

350

 

 

572

 

-39

%

-40

%

 

1,938

 

 

2,347

-17

%

-21

%

Equipment

 

33

 

 

45

 

-27

%

-28

%

 

193

 

 

195

-1

%

-6

%

Total

 

1,561

 

 

1,933

 

-19

%

-20

%

 

7,547

 

 

8,290

-9

%

-13

%

Asia Pacific & Latin America

 

 

 

 

 

 

 

 

Footwear

 

1,197

 

 

1,007

 

19

%

28

%

 

4,111

 

 

3,659

12

%

17

%

Apparel

 

429

 

 

396

 

8

%

16

%

 

1,610

 

 

1,494

8

%

12

%

Equipment

 

56

 

 

55

 

2

%

9

%

 

234

 

 

190

23

%

28

%

Total

 

1,682

 

 

1,458

 

15

%

24

%

 

5,955

 

 

5,343

11

%

16

%

Global Brand Divisions2

 

48

 

 

7

 

586

%

524

%

 

102

 

 

25

308

%

302

%

TOTAL NIKE BRAND

 

11,657

 

 

11,761

 

-1

%

3

%

 

44,436

 

 

42,293

5

%

6

%

Converse

 

593

 

 

596

 

-1

%

3

%

 

2,346

 

 

2,205

6

%

7

%

Corporate3

 

(16

)

 

(13

)

 

 

 

(72

)

 

40

 

 

TOTAL NIKE, INC. REVENUES

$

12,234

 

$

12,344

 

-1

%

3

%

$

46,710

 

$

44,538

5

%

6

%

 

 

 

 

 

 

 

 

 

TOTAL NIKE BRAND

 

 

 

 

 

 

 

 

Footwear

$

7,985

 

$

7,947

 

0

%

4

%

$

29,143

 

$

28,021

4

%

4

%

Apparel

 

3,237

 

 

3,439

 

-6

%

-2

%

 

13,567

 

 

12,865

5

%

6

%

Equipment

 

387

 

 

368

 

5

%

10

%

 

1,624

 

 

1,382

18

%

18

%

Global Brand Divisions2

 

48

 

 

7

 

586

%

524

%

 

102

 

 

25

308

%

302

%

TOTAL NIKE BRAND REVENUES

$

11,657

 

$

11,761

 

-1

%

3

%

$

44,436

 

$

42,293

5

%

6

%

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.

SUPPLEMENTAL NIKE BRAND REVENUE DETAILS

(Unaudited)

 

 

 

 

% Change
Excluding
Currency
Changes1

 

 

 

 

 

TWELVE MONTHS ENDED

%

(Dollars in millions)

5/31/2022

5/31/2021

Change

NIKE Brand Revenues by:

 

 

 

 

Sales to Wholesale Customers

$

25,608

 

$

25,898

 

-1

%

-1

%

Sales through NIKE Direct

 

18,726

 

 

16,370

 

14

%

15

%

Global Brand Divisions2

 

102

 

 

25

 

308

%

302

%

TOTAL NIKE BRAND REVENUES

$

44,436

 

$

42,293

 

5

%

6

%

 

 

 

 

 

NIKE Brand Revenues on a Wholesale Equivalent Basis:3

 

 

 

 

Sales to Wholesale Customers

$

25,608

 

$

25,898

 

-1

%

-1

%

Sales from our Wholesale Operations to NIKE Direct Operations

 

10,543

 

 

9,872

 

7

%

7

%

TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES

$

36,151

 

$

35,770

 

1

%

1

%

 

 

 

 

 

NIKE Brand Wholesale Equivalent Revenues by:3,4

 

 

 

 

Men’s

$

18,797

 

$

18,391

 

2

%

3

%

Women’s

 

8,273

 

 

8,225

 

1

%

1

%

NIKE Kids’

 

4,874

 

 

4,882

 

0

%

0

%

Jordan Brand

 

5,122

 

 

4,780

 

7

%

7

%

Others5

 

(915

)

 

(508

)

-80

%

-79

%

TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES

$

36,151

 

$

35,770

 

1

%

1

%

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 References to NIKE Brand wholesale equivalent revenues, which are considered non-GAAP financial measures, are intended to provide context as to the total size of the Company’s NIKE Brand market footprint if it had no NIKE Direct operations. NIKE Brand wholesale equivalent revenues consist of 1) sales to external wholesale customers and 2) internal sales from the Company’s wholesale operations to its NIKE Direct operations which are charged at prices comparable to those charged to external wholesale customers. 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.

4 As a result of the Consumer Direct Acceleration strategy, announced in fiscal 2021, the Company is now organized around a new consumer construct of Men's, Women's and Kids'. Beginning in the first quarter of fiscal 2022, unisex products are classified within Men's, and Jordan Brand revenues are separately reported. Certain prior year amounts have been reclassified to conform to fiscal 2022 presentation. These changes had no impact on previously reported consolidated results of operations or shareholders' equity. For additional information about the Consumer Direct Acceleration refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations within the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2021.

5 Others include products not allocated to Men’s, Women’s, NIKE Kids’ and Jordan Brand, as well as certain adjustments that are not allocated to products designated by consumer.

NIKE, Inc.

EARNINGS BEFORE INTEREST AND TAXES1

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

THREE MONTHS ENDED

%

TWELVE MONTHS ENDED

%

(Dollars in millions)

5/31/2022

5/31/2021

Change

5/31/2022

5/31/2021

Change

North America

$

1,478

 

$

1,794

 

-18

%

$

5,114

 

$

5,089

 

0

%

Europe, Middle East & Africa

 

899

 

 

550

 

63

%

 

3,293

 

 

2,435

 

35

%

Greater China

 

311

 

 

691

 

-55

%

 

2,365

 

 

3,243

 

-27

%

Asia Pacific & Latin America

 

549

 

 

418

 

31

%

 

1,896

 

 

1,530

 

24

%

Global Brand Divisions2

 

(1,229

)

 

(1,110

)

-11

%

 

(4,262

)

 

(3,656

)

-17

%

TOTAL NIKE BRAND1

 

2,008

 

 

2,343

 

-14

%

 

8,406

 

 

8,641

 

-3

%

Converse

 

165

 

 

138

 

20

%

 

669

 

 

543

 

23

%

Corporate3

 

(759

)

 

(564

)

-35

%

 

(2,219

)

 

(2,261

)

2

%

TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES1

 

1,414

 

 

1,917

 

-26

%

 

6,856

 

 

6,923

 

-1

%

EBIT margin1

 

11.6

%

 

15.5

%

 

 

14.7

%

 

15.5

%

 

Interest expense (income), net

 

40

 

 

63

 

 

 

205

 

 

262

 

 

TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES

$

1,374

 

$

1,854

 

-26

%

$

6,651

 

$

6,661

 

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 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.

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