Company Overview :
Nike 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. NIKE Brand product (consumer products company) focuses offerings in eight key categories namely Running, Basketball, Football (Soccer), Men’s Training, Women’s Training, Action Sports, Sportswear and Golf. Nike also markets products designed for kids, as well as for other athletic and recreational uses such as cricket, lacrosse, tennis, volleyball, wrestling, walking, and outdoor activities.
NIKE is the largest seller of athletic footwear and athletic apparel in the world. It sells products to retail accounts, through NIKE-owned retail stores and internet websites, and through a mix of independent distributors and licensees throughout the world. All of their products are manufactured by independent contractors. Practically all footwear and apparel products are produced outside the United States, while equipment products are produced both in the United States and abroad.
Nike management has reported Q4Fy18 results on 28th June 2018, revenues increased by 13% (Y-o-Y) to USD 9789 million and net income increased by 13% (Y-o-Y) to USD 1137 million due to fall in effective tax rate to 6.4% compared to 13.7% during Q4Fy17 while diluted earnings per share increased 15% (Y-o-Y)to USD 0.69. For Fy18 (Chart 2), revenues increased by 6% (Y-o-Y) to USD 36397 million and net income nose dived by 54% (Y-o-Y to USD 1933 million due to one-time payment of USD 1.9 billion primarily related to the impact of the Tax Act, which had offset strong revenue growth.
Cash and short-term investments were at USD 5.2 billion, USD 934 million lower than last year as share repurchases, dividends and investments in infrastructure were higher.
During the Q4Fy18 company had repurchased a total of 23.1 million shares for approximately USD 1.6 billion. The Company’s new USD 15 billion program will commence upon the completion of the existing program which is expected to be completed within fiscal 2019.
From Chart 7, its clear that Nike is generating robust revenue growth from sales through Nike Direct and also revenue growth was driven by continued strength in international markets. Company management is focusing to get more value out of each of its digital customers through annual loyalty programs.