NIKE, Inc. Reports Fiscal 2013 Second Quarter Results
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal
2013 second quarter ended November 30, 2012. For continuing operations,
strong demand for NIKE, Inc. brands propelled double-digit revenue
growth on a currency neutral basis, and diluted earnings per share grew
faster than revenue due to SG&A leverage, an increase in other income
and a lower average share count, which more than offset the impact of a
slightly lower gross margin and an increase in the effective tax rate.
“Our strong second quarter results show that our growth strategies are
working, even under challenging macroeconomic conditions,” said Mark
Parker, President and CEO, NIKE, Inc. “We have a focused and flexible
portfolio that allows us to target the biggest growth opportunities at
all levels – brand, category and product. We stay connected with our
consumers and that enables us to deliver innovations that excite the
marketplace, grow the business and deliver more value to shareholders.”*
Second Quarter Continuing Operations Income Statement Review
-
Revenues for NIKE, Inc. increased 7 percent to
$6.0 billion, up 10 percent on a currency-neutral basis. Excluding the
impact of changes in foreign currency, NIKE Brand revenues rose 11
percent, with growth in all key categories, product types and
geographies except Greater China. Revenues for Other Businesses
increased 6 percent on a currency-neutral basis, as Converse, Hurley
and NIKE Golf all increased revenues during the quarter.
-
Gross margin declined 30 basis points to 42.5 percent.
Gross margin benefitted from pricing actions and easing material
costs; however, these benefits were more than offset by higher labor
costs and unfavorable changes in foreign exchange rates. Additionally,
gross margin was negatively impacted by a shift in the mix of the
Company’s revenues to lower margin products and businesses.
-
Selling and administrative expenses grew at a slower
rate than revenue, up 6 percent to $1.8 billion. Demand creation
expenses were $613 million, relatively unchanged from the prior year.
Operating overhead expenses increased 10 percent to $1.2 billion due
to additional investments made in the wholesale business to support
growth initiatives and higher Direct to Consumer costs as a result of
higher volume driven expenses in existing NIKE-owned stores and the
cost of new stores opened in the last year.
-
Other income, net was $17 million, comprised primarily
of foreign exchange gains and other non-operating items. For the
quarter, the Company estimates the year-over-year change in currency
related gains and losses included in other income, net, combined with
the impact of changes in currency exchange rates on the translation of
foreign currency-denominated profits, increased pretax income by
approximately $10 million.
-
The effective tax rate was 26.8 percent, compared to
24.1 percent for the same period last year. The increase was largely
as a result of an increase in our effective tax rate on foreign
operations.
-
Net income from continuing operations increased 9
percent to $521 million while diluted earnings per share
increased 11 percent to $1.14, reflecting a 3 percent decline in the
weighted average diluted common shares outstanding.
November 30, 2012 Balance Sheet Review for Continuing Operations
-
Inventories for NIKE, Inc. were $3.3 billion, up 9
percent from November 30, 2011. NIKE Brand inventories increased 8
percent; of which 6 percentage points of growth were due to higher
NIKE Brand wholesale unit inventories to support future demand and 2
percentage points of growth were due to higher average product cost
per unit.
-
Cash and short-term investments were $3.5 billion, $160
million higher than last year mainly as a result of higher net income
and proceeds from the sale of the Umbro brand.
Share Repurchases
During the second quarter, NIKE, Inc. repurchased a total of 4.0 million
shares for approximately $384 million and concluded the Company’s
previous four-year, $5 billion share repurchase program approved by the
Board of Directors in September 2008. During this program the Company
purchased a total of 59.4 million shares at an average price of $84.16.
Following the completion of the previous program, the Company began
repurchases under the four-year, $8 billion program approved in
September 2012. Of the total shares repurchased during the second
quarter, 3.1 million shares were purchased under this program at a cost
of approximately $294 million.
Futures Orders
As of the end of the quarter worldwide futures orders for NIKE Brand
athletic footwear and apparel, scheduled for delivery from December 2012
through April 2013 totaled $9.3 billion, 6 percent higher than orders
reported for the same period last year. Excluding currency changes,
reported orders would have increased 7 percent.*
Discontinued Operations
The Company continually evaluates its existing portfolio of businesses
to ensure resources are invested in those businesses that are accretive
to the NIKE Brand, and represent the largest growth potential and
highest returns. On May 31, 2012, the Company announced its intention to
divest of the Umbro and Cole Haan businesses, which will allow it to
focus resources on driving growth in the NIKE, Jordan, Converse and
Hurley brands.
On November 30, 2012, the Company completed the sale of certain assets
of the Umbro brand to Iconix Brand Group for $225 million. For the
second quarter ended November 30, 2012, the Company recorded a loss of
$107 million, net of tax, on the sale of these assets, representing the
sale price less the value of the Umbro assets sold, the release of the
associated cumulative translation adjustment, and other miscellaneous
charges, offset by a tax benefit on the loss. This loss is included in
the Net Loss from Discontinued Operations.
On November 16, 2012, the Company announced it had reached a definitive
agreement to sell Cole Haan to Apax Partners for $570 million. As of
November 30, 2012, the Company classified Cole Haan as an asset
held-for-sale and included the results of Cole Haan’s operations in the
Net Loss from Discontinued Operations. The Company expects to complete
the sale of Cole Haan in the third quarter of fiscal 2013, and to record
a gain on the sale at that time.
For the second fiscal quarter of 2013, the Company’s Net Loss from
Discontinued Operations was $137 million. This includes the loss
recorded for the sale of the Umbro brand of $107 million, net of tax, in
addition to net operating losses and divesture transaction costs for
Umbro and Cole Haan during the period, net of tax.
Conference Call
NIKE management will host a conference call beginning at approximately
2:00 p.m. PT on December 20, 2012, to review second quarter results. The
conference call will be broadcast live over the Internet and can be
accessed at http://investors.nikeinc.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, December
27, 2012.
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. Wholly-owned NIKE, Inc. subsidiaries include
Converse Inc., which designs, markets and distributes athletic footwear,
apparel and accessories and Hurley International LLC, which designs,
markets and distributes action sports and youth lifestyle footwear,
apparel and accessories. For more information, NIKE’s earnings releases
and other financial information are available on the Internet at http://investors.nikeinc.com
and individuals can follow @Nike.
* 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 S.E.C., including Forms 8-K,
10-Q, and 10-K. Some forward-looking statements in this release concern
changes in futures orders that are not necessarily indicative of changes
in total revenues for subsequent periods due to the mix of futures and
“at once” orders, exchange rate fluctuations, order cancellations,
discounts and returns, which may vary significantly from quarter to
quarter, and because a significant portion of the business does not
report futures orders.
|
|
NIKE, Inc.
CONSOLIDATED STATEMENTS OF INCOME
For
the period ended November 30, 2012
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
SIX MONTHS ENDED
|
|
%
|
|
(Dollars in millions, except per share data)
|
|
11/30/2012
|
|
11/30/2011
|
|
Change
|
|
11/30/2012
|
|
11/30/2011
|
|
Change
|
|
Income from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
5,955
|
|
|
$
|
5,546
|
|
|
7
|
%
|
|
$
|
12,429
|
|
|
$
|
11,439
|
|
|
9
|
%
|
|
Cost of sales
|
|
|
3,425
|
|
|
|
3,170
|
|
|
8
|
%
|
|
|
7,071
|
|
|
|
6,445
|
|
|
10
|
%
|
|
Gross profit
|
|
|
2,530
|
|
|
|
2,376
|
|
|
6
|
%
|
|
|
5,358
|
|
|
|
4,994
|
|
|
7
|
%
|
|
Gross margin
|
|
|
42.5
|
%
|
|
|
42.8
|
%
|
|
|
|
|
43.1
|
%
|
|
|
43.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
|
613
|
|
|
|
616
|
|
|
0
|
%
|
|
|
1,484
|
|
|
|
1,280
|
|
|
16
|
%
|
|
Operating overhead expense
|
|
|
1,223
|
|
|
|
1,115
|
|
|
10
|
%
|
|
|
2,411
|
|
|
|
2,181
|
|
|
11
|
%
|
|
Total selling and administrative expense
|
|
|
1,836
|
|
|
|
1,731
|
|
|
6
|
%
|
|
|
3,895
|
|
|
|
3,461
|
|
|
13
|
%
|
|
% of revenue
|
|
|
30.8
|
%
|
|
|
31.2
|
%
|
|
|
|
|
31.3
|
%
|
|
|
30.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income) expense, net
|
|
|
(1
|
)
|
|
|
3
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
3
|
|
|
-
|
|
|
Other (income) expense, net
|
|
|
(17
|
)
|
|
|
10
|
|
|
-
|
|
|
|
(45
|
)
|
|
|
27
|
|
|
-
|
|
|
Income before income taxes
|
|
|
712
|
|
|
|
632
|
|
|
13
|
%
|
|
|
1,512
|
|
|
|
1,503
|
|
|
1
|
%
|
|
Income taxes
|
|
|
191
|
|
|
|
152
|
|
|
26
|
%
|
|
|
406
|
|
|
|
362
|
|
|
12
|
%
|
|
Effective tax rate
|
|
|
26.8
|
%
|
|
|
24.1
|
%
|
|
|
|
|
26.9
|
%
|
|
|
24.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME FROM CONTINUING OPERATIONS
|
|
|
521
|
|
|
|
480
|
|
|
9
|
%
|
|
|
1,106
|
|
|
|
1,141
|
|
|
-3
|
%
|
|
NET LOSS FROM DISCONTINUED OPERATIONS
|
|
|
(137
|
)
|
|
|
(11
|
)
|
|
-
|
|
|
|
(155
|
)
|
|
|
(27
|
)
|
|
-
|
|
|
NET INCOME
|
|
$
|
384
|
|
|
$
|
469
|
|
|
-18
|
%
|
|
$
|
951
|
|
|
$
|
1,114
|
|
|
-15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
$
|
1.16
|
|
|
$
|
1.05
|
|
|
10
|
%
|
|
$
|
2.45
|
|
|
$
|
2.47
|
|
|
-1
|
%
|
|
Diluted earnings per common share
|
|
$
|
1.14
|
|
|
$
|
1.03
|
|
|
11
|
%
|
|
$
|
2.41
|
|
|
$
|
2.42
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
$
|
(0.30
|
)
|
|
$
|
(0.03
|
)
|
|
-
|
|
|
$
|
(0.34
|
)
|
|
$
|
(0.06
|
)
|
|
-
|
|
|
Diluted earnings per common share
|
|
$
|
(0.30
|
)
|
|
$
|
(0.03
|
)
|
|
-
|
|
|
$
|
(0.34
|
)
|
|
$
|
(0.06
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
448.5
|
|
|
|
459.2
|
|
|
|
|
|
450.7
|
|
|
|
462.1
|
|
|
|
|
Diluted
|
|
|
456.6
|
|
|
|
468.5
|
|
|
|
|
|
459.2
|
|
|
|
471.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.42
|
|
|
$
|
0.36
|
|
|
|
|
$
|
0.78
|
|
|
$
|
0.67
|
|
|
|
|
|
|
|
NIKE, Inc.
CONSOLIDATED BALANCE SHEETS
As of
November 30, 2012
|
|
|
|
|
|
November 30,
|
|
November 30,
|
|
|
|
|
(Dollars in millions)
|
|
2012
|
|
2011
|
|
% Change
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
2,291
|
|
$
|
1,929
|
|
19
|
%
|
|
Short-term investments
|
|
|
1,234
|
|
|
1,436
|
|
-14
|
%
|
|
Accounts receivable, net
|
|
|
3,188
|
|
|
3,016
|
|
6
|
%
|
|
Inventories
|
|
|
3,318
|
|
|
3,035
|
|
9
|
%
|
|
Deferred income taxes
|
|
|
327
|
|
|
289
|
|
13
|
%
|
|
Prepaid expenses and other current assets
|
|
|
733
|
|
|
768
|
|
-5
|
%
|
|
Assets of discontinued operations
|
|
|
344
|
|
|
576
|
|
-40
|
%
|
|
Total current assets
|
|
|
11,435
|
|
|
11,049
|
|
3
|
%
|
|
Property, plant and equipment
|
|
|
5,310
|
|
|
4,883
|
|
9
|
%
|
|
Less accumulated depreciation
|
|
|
3,052
|
|
|
2,780
|
|
10
|
%
|
|
Property, plant and equipment, net
|
|
|
2,258
|
|
|
2,103
|
|
7
|
%
|
|
Identifiable intangible assets, net
|
|
|
374
|
|
|
364
|
|
3
|
%
|
|
Goodwill
|
|
|
131
|
|
|
131
|
|
0
|
%
|
|
Deferred income taxes and other assets
|
|
|
973
|
|
|
918
|
|
6
|
%
|
|
TOTAL ASSETS
|
|
$
|
15,171
|
|
$
|
14,565
|
|
4
|
%
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
58
|
|
$
|
114
|
|
-49
|
%
|
|
Notes payable
|
|
|
100
|
|
|
123
|
|
-19
|
%
|
|
Accounts payable
|
|
|
1,519
|
|
|
1,370
|
|
11
|
%
|
|
Accrued liabilities
|
|
|
1,879
|
|
|
1,727
|
|
9
|
%
|
|
Income taxes payable
|
|
|
45
|
|
|
81
|
|
-44
|
%
|
|
Liabilities of discontinued operations
|
|
|
198
|
|
|
181
|
|
9
|
%
|
|
Total current liabilities
|
|
|
3,799
|
|
|
3,596
|
|
6
|
%
|
|
Long-term debt
|
|
|
170
|
|
|
234
|
|
-27
|
%
|
|
Deferred income taxes and other liabilities
|
|
|
1,188
|
|
|
892
|
|
33
|
%
|
|
Redeemable preferred stock
|
|
|
-
|
|
|
-
|
|
-
|
|
|
Shareholders' equity
|
|
|
10,014
|
|
|
9,843
|
|
2
|
%
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
15,171
|
|
$
|
14,565
|
|
4
|
%
|
|
|
|
|
NIKE, Inc.
DIVISIONAL REVENUES1
For
the period ended November 30, 2012
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
|
Excluding
|
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
Currency
|
|
SIX MONTHS ENDED
|
|
%
|
|
Currency
|
|
(Dollars in millions)
|
|
11/30/2012
|
|
11/30/2011
|
|
Change
|
|
Changes 2
|
|
11/30/2012
|
|
11/30/2011
|
|
Change
|
|
Changes 2
|
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
1,471
|
|
|
$
|
1,305
|
|
|
13
|
%
|
|
13
|
%
|
|
$
|
3,203
|
|
|
$
|
2,749
|
|
|
17
|
%
|
|
17
|
%
|
|
Apparel
|
|
|
788
|
|
|
|
661
|
|
|
19
|
%
|
|
19
|
%
|
|
|
1,583
|
|
|
|
1,293
|
|
|
22
|
%
|
|
23
|
%
|
|
Equipment
|
|
|
162
|
|
|
|
100
|
|
|
62
|
%
|
|
61
|
%
|
|
|
341
|
|
|
|
224
|
|
|
52
|
%
|
|
52
|
%
|
|
Total
|
|
|
2,421
|
|
|
|
2,066
|
|
|
17
|
%
|
|
17
|
%
|
|
|
5,127
|
|
|
|
4,266
|
|
|
20
|
%
|
|
20
|
%
|
|
Western Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
545
|
|
|
|
538
|
|
|
1
|
%
|
|
8
|
%
|
|
|
1,259
|
|
|
|
1,269
|
|
|
-1
|
%
|
|
9
|
%
|
|
Apparel
|
|
|
301
|
|
|
|
324
|
|
|
-7
|
%
|
|
-1
|
%
|
|
|
683
|
|
|
|
740
|
|
|
-8
|
%
|
|
1
|
%
|
|
Equipment
|
|
|
51
|
|
|
|
53
|
|
|
-4
|
%
|
|
4
|
%
|
|
|
122
|
|
|
|
134
|
|
|
-9
|
%
|
|
-1
|
%
|
|
Total
|
|
|
897
|
|
|
|
915
|
|
|
-2
|
%
|
|
4
|
%
|
|
|
2,064
|
|
|
|
2,143
|
|
|
-4
|
%
|
|
6
|
%
|
|
Central & Eastern Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
134
|
|
|
|
135
|
|
|
-1
|
%
|
|
4
|
%
|
|
|
312
|
|
|
|
315
|
|
|
-1
|
%
|
|
9
|
%
|
|
Apparel
|
|
|
117
|
|
|
|
111
|
|
|
5
|
%
|
|
10
|
%
|
|
|
251
|
|
|
|
234
|
|
|
7
|
%
|
|
17
|
%
|
|
Equipment
|
|
|
15
|
|
|
|
15
|
|
|
0
|
%
|
|
5
|
%
|
|
|
45
|
|
|
|
46
|
|
|
-2
|
%
|
|
9
|
%
|
|
Total
|
|
|
266
|
|
|
|
261
|
|
|
2
|
%
|
|
7
|
%
|
|
|
608
|
|
|
|
595
|
|
|
2
|
%
|
|
12
|
%
|
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
324
|
|
|
|
353
|
|
|
-8
|
%
|
|
-9
|
%
|
|
|
680
|
|
|
|
667
|
|
|
2
|
%
|
|
1
|
%
|
|
Apparel
|
|
|
224
|
|
|
|
268
|
|
|
-16
|
%
|
|
-17
|
%
|
|
|
402
|
|
|
|
445
|
|
|
-10
|
%
|
|
-11
|
%
|
|
Equipment
|
|
|
29
|
|
|
|
29
|
|
|
0
|
%
|
|
-2
|
%
|
|
|
67
|
|
|
|
66
|
|
|
2
|
%
|
|
-1
|
%
|
|
Total
|
|
|
577
|
|
|
|
650
|
|
|
-11
|
%
|
|
-12
|
%
|
|
|
1,149
|
|
|
|
1,178
|
|
|
-2
|
%
|
|
-4
|
%
|
|
Japan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
107
|
|
|
|
100
|
|
|
7
|
%
|
|
10
|
%
|
|
|
213
|
|
|
|
203
|
|
|
5
|
%
|
|
6
|
%
|
|
Apparel
|
|
|
98
|
|
|
|
83
|
|
|
18
|
%
|
|
19
|
%
|
|
|
159
|
|
|
|
155
|
|
|
3
|
%
|
|
3
|
%
|
|
Equipment
|
|
|
14
|
|
|
|
15
|
|
|
-7
|
%
|
|
-6
|
%
|
|
|
30
|
|
|
|
34
|
|
|
-12
|
%
|
|
-12
|
%
|
|
Total
|
|
|
219
|
|
|
|
198
|
|
|
11
|
%
|
|
13
|
%
|
|
|
402
|
|
|
|
392
|
|
|
3
|
%
|
|
3
|
%
|
|
Emerging Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
718
|
|
|
|
660
|
|
|
9
|
%
|
|
16
|
%
|
|
|
1,322
|
|
|
|
1,227
|
|
|
8
|
%
|
|
18
|
%
|
|
Apparel
|
|
|
273
|
|
|
|
233
|
|
|
17
|
%
|
|
24
|
%
|
|
|
484
|
|
|
|
415
|
|
|
17
|
%
|
|
27
|
%
|
|
Equipment
|
|
|
61
|
|
|
|
55
|
|
|
11
|
%
|
|
16
|
%
|
|
|
113
|
|
|
|
106
|
|
|
7
|
%
|
|
16
|
%
|
|
Total
|
|
|
1,052
|
|
|
|
948
|
|
|
11
|
%
|
|
18
|
%
|
|
|
1,919
|
|
|
|
1,748
|
|
|
10
|
%
|
|
20
|
%
|
|
Global Brand Divisions3 |
|
|
27
|
|
|
|
25
|
|
|
8
|
%
|
|
15
|
%
|
|
|
54
|
|
|
|
57
|
|
|
-5
|
%
|
|
2
|
%
|
|
Total NIKE Brand
|
|
|
5,459
|
|
|
|
5,063
|
|
|
8
|
%
|
|
11
|
%
|
|
|
11,323
|
|
|
|
10,379
|
|
|
9
|
%
|
|
13
|
%
|
|
Other Businesses4 |
|
|
518
|
|
|
|
488
|
|
|
6
|
%
|
|
6
|
%
|
|
|
1,153
|
|
|
|
1,073
|
|
|
7
|
%
|
|
8
|
%
|
|
Corporate5 |
|
|
(22
|
)
|
|
|
(5
|
)
|
|
-
|
|
|
-
|
|
|
|
(47
|
)
|
|
|
(13
|
)
|
|
-
|
|
|
-
|
|
|
Total NIKE, Inc. Revenues From Continuing Operations
|
|
$
|
5,955
|
|
|
$
|
5,546
|
|
|
7
|
%
|
|
10
|
%
|
|
$
|
12,429
|
|
|
$
|
11,439
|
|
|
9
|
%
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NIKE Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
3,299
|
|
|
$
|
3,091
|
|
|
7
|
%
|
|
10
|
%
|
|
$
|
6,989
|
|
|
$
|
6,430
|
|
|
9
|
%
|
|
13
|
%
|
|
Apparel
|
|
|
1,801
|
|
|
|
1,680
|
|
|
7
|
%
|
|
10
|
%
|
|
|
3,562
|
|
|
|
3,282
|
|
|
9
|
%
|
|
12
|
%
|
|
Equipment
|
|
|
332
|
|
|
|
267
|
|
|
24
|
%
|
|
27
|
%
|
|
|
718
|
|
|
|
610
|
|
|
18
|
%
|
|
22
|
%
|
|
Global Brand Divisions3 |
|
|
27
|
|
|
|
25
|
|
|
8
|
%
|
|
15
|
%
|
|
|
54
|
|
|
|
57
|
|
|
-5
|
%
|
|
2
|
%
|
|
1 Certain prior year amounts have been reclassified to
conform to fiscal year 2013 presentation. These changes had no
impact on previously reported results of operations or
shareholders' equity.
|
|
|
|
2 Fiscal 2013 results have been restated using fiscal
2012 exchange rates for the comparative period to enhance the
visibility of the underlying business trends excluding the impact
of foreign currency exchange rate fluctuations.
|
|
|
|
3 Global Brand Divisions primarily represent NIKE Brand
licensing businesses that are not part of a geographic operating
segment.
|
|
|
|
4 Other businesses represent activities of Converse,
Hurley, and NIKE Golf.
|
|
|
|
5 Corporate revenues primarily consist of intercompany
revenue eliminations and foreign currency revenue-related hedge
gains and losses generated by entities within the NIKE Brand
geographic operating segments and certain Other Businesses through
our centrally managed foreign exchange risk management program.
|
|
|
|
|
NIKE, Inc.
EARNINGS BEFORE INTEREST AND TAXES1,2
For
the period ended November 30, 2012
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
SIX MONTHS ENDED
|
|
%
|
|
(Dollars in millions)
|
|
11/30/2012
|
|
11/30/2011
|
|
Change
|
|
11/30/2012
|
|
11/30/2011
|
|
Change
|
|
North America
|
|
$ 556
|
|
$ 426
|
|
31%
|
|
$ 1,186
|
|
$ 965
|
|
23%
|
|
Western Europe
|
|
113
|
|
92
|
|
23%
|
|
327
|
|
315
|
|
4%
|
|
Central & Eastern Europe
|
|
43
|
|
33
|
|
30%
|
|
104
|
|
103
|
|
1%
|
|
Greater China
|
|
185
|
|
220
|
|
-16%
|
|
349
|
|
391
|
|
-11%
|
|
Japan
|
|
43
|
|
35
|
|
23%
|
|
67
|
|
69
|
|
-3%
|
|
Emerging Markets
|
|
305
|
|
247
|
|
23%
|
|
528
|
|
437
|
|
21%
|
|
Global Brand Divisions3 |
|
(324)
|
|
(281)
|
|
-15%
|
|
(699)
|
|
(547)
|
|
-28%
|
|
TOTAL NIKE BRAND
|
|
921
|
|
772
|
|
19%
|
|
1,862
|
|
1,733
|
|
7%
|
|
Other Businesses4 |
|
80
|
|
71
|
|
13%
|
|
201
|
|
176
|
|
14%
|
|
Corporate5 |
|
(290)
|
|
(208)
|
|
-39%
|
|
(555)
|
|
(403)
|
|
-38%
|
|
TOTAL EARNINGS BEFORE INTEREST AND TAXES
|
|
$ 711
|
|
$ 635
|
|
12%
|
|
$ 1,508
|
|
$ 1,506
|
|
0%
|
|
1 The Company evaluates performance of individual
operating segments based on earnings before interest and taxes (also
commonly referred to as “EBIT”), which represents net income before
interest expense, net, and income taxes.
|
|
|
|
2 Certain prior year amounts have been reclassified to
conform to fiscal year 2013 presentation. These changes had no
impact on previously reported results of operations or
shareholders' equity.
|
|
|
|
3 Global Brand Divisions primarily represent NIKE Brand
licensing businesses that are not part of a geographic operating
segment and general and administrative expenses that are centrally
managed for the Nike Brand.
|
|
|
|
4 Other Businesses represent activities of Converse,
Hurley, and NIKE Golf.
|
|
|
|
5 Corporate consists of unallocated general and
administrative expenses, which includes expenses associated with
centrally managed departments, depreciation and amortization
related to the Company’s corporate headquarters, unallocated
insurance and benefit programs, certain foreign currency gains and
losses, including certain hedge gains and losses, corporate
eliminations and other items.
|
|
|
|
|
NIKE, Inc.
NIKE BRAND REPORTED FUTURES GROWTH BY
GEOGRAPHY1
As of November 30, 2012
|
|
|
|
|
|
Reported Futures Orders
|
|
Excluding Currency Changes 2
|
|
North America
|
|
14%
|
|
14%
|
|
Western Europe
|
|
-1%
|
|
0%
|
|
Central & Eastern Europe
|
|
10%
|
|
11%
|
|
Greater China
|
|
-6%
|
|
-7%
|
|
Japan
|
|
-3%
|
|
4%
|
|
Emerging Markets
|
|
7%
|
|
11%
|
|
Total NIKE Brand Reported Futures
|
|
6%
|
|
7%
|
|
1 Futures orders by geography and in total for NIKE Brand
athletic footwear and apparel scheduled for delivery from December
2012 through April 2013.
|
|
|
|
The reported futures and advance orders growth is not necessarily
indicative of our expectation of revenue growth during this period.
This is due to year-over-year changes in shipment timing and because
the mix of orders can shift between advance/futures and at-once
orders and the fulfillment of certain orders may fall outside of the
schedule noted above. In addition, exchange rate fluctuations as
well as differing levels of order cancellations and discounts can
cause differences in the comparisons between advance/futures orders
and actual revenues. Moreover, a significant portion of our revenue
is not derived from futures and advance orders, including at-once
and close-out sales of NIKE Brand footwear and apparel, sales of
NIKE Brand equipment, sales from certain of our Direct to Consumer
operations, and sales from our Other Businesses.
|
|
|
|
2 Reported futures restated using prior year exchange
rates to enhance the visibility of the underlying business trends
excluding the impact of foreign currency exchange rate fluctuations.
|
|
|
