Nike Soars With $8B in Revenue

Nike Inc. blew past analyst predictions, netting $8 billion in revenue during its first fiscal quarter. It was a 15 percent increase over 2013.

The Beaverton, Ore.-based company reported that net income climbed to $962 million, or $1.09 in diluted earnings per share. That’s up 23 percent from the same year-ago quarter, when the company reported $779 million, or 86 cents per diluted share.

Analysts had predicted diluted EPS of 88 cents during the first quarter.

Revenue during the three months ended Aug. 31 was $8 billion, compared with $6.97 billion in the year-ago quarter. Analysts had predicted revenue of $7.83 billion.

Executives said some of the key factors in the company’s growth were major sporting events — such as the World Cup — a growing global middle class and athletic trends in apparel and footwear.

“Fiscal year 2014 is off to a strong start,” Nike President and CEO Mark Parker said in a statement. “Our connection to consumers and ability to innovate, combined with our powerful global portfolio, is a complete offense. Nike has never been better-positioned to realize our tremendous growth potential.”

Shoes excelled during the period, growing in each global market. Footwear was the strongest-performing category, with $4.7 billion in revenue for the quarter, an 18 percent increase over 2013. Running continued to be an important focus for the brand, with strong sell-throughs of the Pegasus 31, LunarGlide 6 and Free Flyknit styles.

Internationally, China and Western Europe remained strong markets for the company. In Western Europe, footwear revenues climbed 36 percent over 2013 to $1.1 billion. In China, footwear grew 29 percent to $440 million.

The women’s category was also a key driver in the quarter, reporting double-digit growth. Executives said the women’s market continues to be one of the most important opportunities for the brand. They noted the Nike Free Trainer 4.0 was a best seller, and there was a growing of participation among women in the Nike+ Training Club.

On a call with investors, Nike Brand President Trevor Edwards outlined the strategy for that category. “We’re experiencing tremendous growth online led by Nike.com, and in-store driven by sharper assortments and the continued expansion of the Nike+ Training Club concept to in-line stores,” he said. “And our printed and digital style guides are a key accelerator leading to increased conversion. All told, it is this complete offense that’s driving impressive results for our women’s business.”

TOMS Sponsored By TOMS

Building Business to Improve Lives

TOMS discusses its approach to mental health awareness and female empowerment through impact initiatives in the footwear segment.
Learn More

Access exclusive content