Nike revenues increase 15% to $5.8 billion

Nike, Inc. released their 2012 Third Quarter results today, highlighting a 15% increase in revenues – to $5.8 billion.

The Beaverton, Oregon sports apparel giant reports that earnings per share for the quarter rose 11% as a result of continued strong demand for the Nike brand.

“We had a strong third quarter. Our relentless focus on innovation delivered powerful new products and services for athletes and consumers, and continues to drive value to our shareholders,” said Mark Parker, President and CEO, NIKE, Inc. “The environment remains volatile, but I’m optimistic about the future. We’re starting a great season of major sports events and we have a pipeline full of innovation to fuel growth over the long term.”

Nike revenues saw growth in every geographic territory with the exception of Japan. They also saw increases in every apparel category. Revenue from other businesses under the Nike umbrella saw increases of 12%. Those other businesses include Converse, Nike Golf and Umbro. Cole Haan, another Nike subsiderary, was flat to last year.

It wasn’t all good news. Nike’s Gross Margin declined 200 basis points to 43.8% due to higher product costs. However, Nike claims the GPM decrease was offset by effective product cost reduction services and Direct-to-Consumer sales.

QUARTER ENDED % Change % Change Excluding Currency Changes 2 YEAR TO DATE ENDED % Change % Change Excluding Currency Changes 2
DIVISIONAL REVENUES1 2/29/2012 2/28/2011 2/29/2012 2/28/2011
(Dollars in millions) (Dollars in millions)
North America
Footwear $ 1,470 $ 1,275 15 % 15 % $ 4,219 $ 3,647 16 % 16 %
Apparel 573 480 19 % 19 % 1,866 1,533 22 % 22 %
Equipment 106 81 31 % 29 % 330 260 27 % 27 %
Total 2,149 1,836 17 % 17 % 6,415 5,440 18 % 18 %
Western Europe
Footwear 606 568 7 % 8 % 1,875 1,702 10 % 4 %
Apparel 305 302 1 % 2 % 1,045 984 6 % 0 %
Equipment 51 52 -2 % 1 % 185 165 12 % 5 %
Total 962 922 4 % 6 % 3,105 2,851 9 % 2 %
Central & Eastern Europe
Footwear 161 144 12 % 19 % 476 414 15 % 15 %
Apparel 96 92 4 % 11 % 330 275 20 % 19 %
Equipment 18 17 6 % 15 % 64 57 12 % 12 %
Total 275 253 9 % 16 % 870 746 17 % 16 %
Greater China
Footwear 449 333 35 % 30 % 1,116 843 32 % 27 %
Apparel 221 201 10 % 6 % 666 574 16 % 11 %
Equipment 24 20 20 % 9 % 90 79 14 % 8 %
Total 694 554 25 % 21 % 1,872 1,496 25 % 19 %
Japan
Footwear 108 100 8 % 0 % 310 279 11 % 1 %
Apparel 78 78 0 % -7 % 231 223 4 % -5 %
Equipment 15 17 -12 % -8 % 48 48 0 % -8 %
Total 201 195 3 % -3 % 589 550 7 % -2 %
Emerging Markets
Footwear 553 448 23 % 30 % 1,780 1,373 30 % 29 %
Apparel 187 148 26 % 33 % 602 480 25 % 24 %
Equipment 53 47 13 % 18 % 158 136 16 % 16 %
Total 793 643 23 % 30 % 2,540 1,989 28 % 27 %
Global Brand Divisions3 27 22 23 % 22 % 85 67 27 % 20 %
Total NIKE Brand 5,101 4,425 15 % 16 % 15,476 13,139 18 % 15 %
Other Businesses4 753 671 12 % 12 % 2,199 2,013 9 % 8 %
Corporate5 (8 ) (17 ) 53 % 46 % (17 ) (56 ) 70 % 38 %
Total NIKE, Inc. Revenues $ 5,846 $ 5,079 15 % 16 % $ 17,658 $ 15,096 17 % 14 %
Total NIKE Brand
Footwear $ 3,347 $ 2,868 17 % 18 % $ 9,776 $ 8,258 18 % 16 %
Apparel 1,460 1,301 12 % 13 % 4,740 4,069 16 % 13 %
Equipment 267 234 14 % 15 % 875 745 17 % 15 %
Global Brand Divisions3 27 22 23 % 22 % 85 67 27 % 20 %

Leave a Reply