NIKE Inc has reported its 2013 financial results for both its fourth quarter and the full year ended 31 May 2013. For continuing operations, the company notes that strong demand for NIKE Inc brands drove fourth quarter revenue to US$6.7 billion, up 7%, or +9% on a currency neutral basis.
Fiscal 2013 revenues from continuing operations were US$25.3 billion, up 8%, or 11% excluding the impact of changes in foreign currency.
“Fiscal 2013 was a great year for NIKE, driven by our innovative products and the power of our brands,” said Mark Parker, President and CEO of NIKE Inc. “And we’re excited about what lies ahead. We have the best leadership team in the industry and a deep innovation pipeline. Both are aligned against our biggest opportunities to drive growth, manage risk and drive long-term shareholder value.”
Fourth quarter diluted EPS (earnings per share) from continuing operations grew faster than revenue, up 27%. This was mainly as a result of gross margin expansion, a lower effective tax rate and a lower average share count.
In September 2012, NIKE’S board of directors approved a new four-year, US$8 billion program to repurchase NIKE common stock. By continuing to repurchase its own shares, Nike draws on cash reserves but reduces the number of shares held by the public. This should help to benefit existing shareholders; as even if profits do not grow, the reduction in publicly available shares would increase the earnings per share.
For continuing operations, fiscal 2013 diluted EPS growth also outpaced revenue growth, up 11% to US$2.69 per share. Again, this was primarily due to gross margin improvement, a lower tax rate and a lower average share count. This ‘more than offset the impact of SG&A deleverage’ – or the unwinding of debt from selling, general and administrative expenses.
