Seeking Alpha

Nike's futures growth, margin improvement overshadow spending

  • Nike's (NKE) futures orders were up 11% Y/Y as of the end of FQ4; they were up 12% at the end of FQ3. North American futures +11%, Western Europe +25%, Central/Easter Europe +10%, Greater China +6%, Japan -6%, Emerging Markets +2%.
  • Gross margin rose 110 bps Q/Q and 170 bps Y/Y to 45.6%, thanks to higher ASPs and growing direct-to-consumer sales (higher-margin). Forex and higher input costs acted as headwinds.
  • Overhead spend +13% Y/Y to $1.57B, demand creation spend (lifted by World Cup-related marketing) +36% to $876M. The figures outpaced continued ops revenue growth of 11%.
  • Footwear sales +14% Y/Y to $4.4B, apparel +12% to $2.1B, equipment -4% to $447M. Total Nike brand revenue +9% - wholesale +7%, direct to consumer +22%.
  • Inventories +13% Y/Y to $3.9B. $912M was spent to buy back 12.3M shares.
  • NKE +2.6% AH. FQ4 results, PR
Comments (1)
  • jeanewight
    , contributor
    Comments (344) | Send Message
    Positive results/data to focus on today!
    26 Jun, 05:50 PM Reply Like
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