NIKE has reported fiscal 2015 financial results for its fourth quarter and full year ended 31 May 2015.
Revenues for NIKE Inc rose 5% to US$7.8 billion, up 13% on a currency-neutral basis. Revenues for the NIKE brand were US$7.4 billion, also up 13% on a currency-neutral basis, and ‘driven by growth in nearly every geography and key category.’
Gross margin expanded 60 basis points to 46.2%. NIKE notes that the increase in margin was primarily attributable to higher average selling prices and continued growth in the higher margin Direct to Consumer (DTC) business. Although, this was partially offset by higher product input and logistics costs.
The company has confirmed that diluted earnings per share for the quarter increased 26% as ‘broad-based revenue growth, gross margin expansion and a lower tax rate more than offset increased SG&A (Selling, General and Administrative Expenses) investments.
Fiscal 2015 diluted earnings per share rose 25% to US$3.70, reflecting 10% revenue gain, gross margin expansion, a lower tax rate and a lower average share count, which, again, more than offset the impacts of higher SG&A investments.
“Fiscal 2015 was an outstanding year for NIKE,” said Mark Parker, NIKE President and CEO. “Our consistent growth is fueled by our connection to the consumer and our ability to deliver innovation at an unprecedented pace and scale. At no time in our history has the growth potential been greater for NIKE.”
