(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Title of each class) | (Trading Symbol) | (Name of each exchange on which registered) |
Exhibit No. | Exhibit | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
NIKE, Inc. (Registrant) | |||||||||||
Date: | March 21, 2022 | By: | /s/ Matthew Friend | ||||||||
Matthew Friend | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
Investor Contact: | Media Contact: | |||||||
Paul Trussell | KeJuan Wilkins | |||||||
investor.relations@nike.com | media.relations@nike.com |
* | See additional information in the accompanying Divisional Revenues table regarding this non-GAAP financial measure. | ||||
** | The marked paragraphs contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K. |
NIKE, Inc. | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
THREE MONTHS ENDED | % | NINE MONTHS ENDED | % | |||||||||||||||||
(In millions, except per share data) | 2/28/2022 | 2/28/2021 | Change | 2/28/2022 | 2/28/2021 | Change | ||||||||||||||
Revenues | $ | 10,871 | $ | 10,357 | 5 | % | $ | 34,476 | $ | 32,194 | 7 | % | ||||||||
Cost of sales | 5,804 | 5,638 | 3 | % | 18,500 | 17,887 | 3 | % | ||||||||||||
Gross profit | 5,067 | 4,719 | 7 | % | 15,976 | 14,307 | 12 | % | ||||||||||||
Gross margin | 46.6 | % | 45.6 | % | 46.3 | % | 44.4 | % | ||||||||||||
Demand creation expense | 854 | 711 | 20 | % | 2,789 | 2,117 | 32 | % | ||||||||||||
Operating overhead expense | 2,584 | 2,330 | 11 | % | 7,980 | 7,166 | 11 | % | ||||||||||||
Total selling and administrative expense | 3,438 | 3,041 | 13 | % | 10,769 | 9,283 | 16 | % | ||||||||||||
% of revenues | 31.6 | % | 29.4 | % | 31.2 | % | 28.8 | % | ||||||||||||
Interest expense (income), net | 53 | 64 | — | 165 | 199 | — | ||||||||||||||
Other (income) expense, net | (94) | (22) | — | (235) | 18 | — | ||||||||||||||
Income before income taxes | 1,670 | 1,636 | 2 | % | 5,277 | 4,807 | 10 | % | ||||||||||||
Income tax expense | 274 | 187 | 47 | % | 670 | 589 | 14 | % | ||||||||||||
Effective tax rate | 16.4 | % | 11.4 | % | 12.7 | % | 12.3 | % | ||||||||||||
NET INCOME | $ | 1,396 | $ | 1,449 | -4 | % | $ | 4,607 | $ | 4,218 | 9 | % | ||||||||
Earnings per common share: | ||||||||||||||||||||
Basic | $ | 0.88 | $ | 0.92 | -4 | % | $ | 2.91 | $ | 2.68 | 9 | % | ||||||||
Diluted | $ | 0.87 | $ | 0.90 | -3 | % | $ | 2.85 | $ | 2.62 | 9 | % | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 1,579.0 | 1,578.0 | 1,581.1 | 1,570.9 | ||||||||||||||||
Diluted | 1,610.7 | 1,616.9 | 1,615.8 | 1,607.3 | ||||||||||||||||
Dividends declared per common share | $ | 0.305 | $ | 0.275 | $ | 0.885 | $ | 0.795 |
NIKE, Inc. | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(Unaudited) | |||||||||||
February 28, | February 28, | % Change | |||||||||
(Dollars in millions) | 2022 | 2021 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and equivalents | $ | 8,704 | $ | 8,516 | 2 | % | |||||
Short-term investments | 4,763 | 4,012 | 19 | % | |||||||
Accounts receivable, net | 3,827 | 3,669 | 4 | % | |||||||
Inventories | 7,700 | 6,693 | 15 | % | |||||||
Prepaid expenses and other current assets | 1,968 | 1,810 | 9 | % | |||||||
Total current assets | 26,962 | 24,700 | 9 | % | |||||||
Property, plant and equipment, net | 4,806 | 4,958 | -3 | % | |||||||
Operating lease right-of-use assets, net | 2,959 | 3,149 | -6 | % | |||||||
Identifiable intangible assets, net | 291 | 271 | 7 | % | |||||||
Goodwill | 284 | 242 | 17 | % | |||||||
Deferred income taxes and other assets | 3,275 | 2,865 | 14 | % | |||||||
TOTAL ASSETS | $ | 38,577 | $ | 36,185 | 7 | % | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | — | $ | — | — | ||||||
Notes payable | — | 4 | -100 | % | |||||||
Accounts payable | 2,770 | 2,257 | 23 | % | |||||||
Current portion of operating lease liabilities | 455 | 470 | -3 | % | |||||||
Accrued liabilities | 5,391 | 5,907 | -9 | % | |||||||
Income taxes payable | 202 | 256 | -21 | % | |||||||
Total current liabilities | 8,818 | 8,894 | -1 | % | |||||||
Long-term debt | 9,418 | 9,412 | 0 | % | |||||||
Operating lease liabilities | 2,784 | 2,964 | -6 | % | |||||||
Deferred income taxes and other liabilities | 2,748 | 2,984 | -8 | % | |||||||
Redeemable preferred stock | — | — | — | ||||||||
Shareholders’ equity | 14,809 | 11,931 | 24 | % | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 38,577 | $ | 36,185 | 7 | % |
NIKE, Inc. | ||||||||||||||||||||||||||
DIVISIONAL REVENUES | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
% Change Excluding Currency Changes1 | % Change Excluding Currency Changes1 | |||||||||||||||||||||||||
THREE MONTHS ENDED | % | NINE MONTHS ENDED | % | |||||||||||||||||||||||
(Dollars in millions) | 2/28/2022 | 2/28/2021 | Change | 2/28/2022 | 2/28/2021 | Change | ||||||||||||||||||||
North America | ||||||||||||||||||||||||||
Footwear | $ | 2,532 | $ | 2,382 | 6 | % | 6 | % | $ | 8,648 | $ | 7,851 | 10 | % | 10 | % | ||||||||||
Apparel | 1,207 | 1,087 | 11 | % | 11 | % | 4,117 | 3,580 | 15 | % | 15 | % | ||||||||||||||
Equipment | 143 | 95 | 51 | % | 49 | % | 473 | 364 | 30 | % | 30 | % | ||||||||||||||
Total | 3,882 | 3,564 | 9 | % | 9 | % | 13,238 | 11,795 | 12 | % | 12 | % | ||||||||||||||
Europe, Middle East & Africa | ||||||||||||||||||||||||||
Footwear | 1,569 | 1,606 | -2 | % | 4 | % | 5,358 | 5,139 | 4 | % | 4 | % | ||||||||||||||
Apparel | 1,083 | 898 | 21 | % | 28 | % | 3,444 | 2,973 | 16 | % | 16 | % | ||||||||||||||
Equipment | 127 | 105 | 21 | % | 29 | % | 426 | 365 | 17 | % | 16 | % | ||||||||||||||
Total | 2,779 | 2,609 | 7 | % | 13 | % | 9,228 | 8,477 | 9 | % | 9 | % | ||||||||||||||
Greater China | ||||||||||||||||||||||||||
Footwear | 1,554 | 1,614 | -4 | % | -6 | % | 4,238 | 4,432 | -4 | % | -9 | % | ||||||||||||||
Apparel | 548 | 616 | -11 | % | -13 | % | 1,588 | 1,775 | -11 | % | -15 | % | ||||||||||||||
Equipment | 58 | 49 | 18 | % | 15 | % | 160 | 150 | 7 | % | 1 | % | ||||||||||||||
Total | 2,160 | 2,279 | -5 | % | -8 | % | 5,986 | 6,357 | -6 | % | -11 | % | ||||||||||||||
Asia Pacific & Latin America | ||||||||||||||||||||||||||
Footwear | 1,005 | 903 | 11 | % | 20 | % | 2,914 | 2,652 | 10 | % | 13 | % | ||||||||||||||
Apparel | 394 | 365 | 8 | % | 16 | % | 1,181 | 1,098 | 8 | % | 10 | % | ||||||||||||||
Equipment | 62 | 47 | 32 | % | 44 | % | 178 | 135 | 32 | % | 36 | % | ||||||||||||||
Total | 1,461 | 1,315 | 11 | % | 19 | % | 4,273 | 3,885 | 10 | % | 13 | % | ||||||||||||||
Global Brand Divisions2 | 41 | 6 | 583 | % | 561 | % | 54 | 18 | 200 | % | 206 | % | ||||||||||||||
TOTAL NIKE BRAND | 10,323 | 9,773 | 6 | % | 8 | % | 32,779 | 30,532 | 7 | % | 7 | % | ||||||||||||||
Converse | 567 | 570 | -1 | % | 2 | % | 1,753 | 1,609 | 9 | % | 8 | % | ||||||||||||||
Corporate3 | (19) | 14 | — | — | (56) | 53 | — | — | ||||||||||||||||||
TOTAL NIKE, INC. REVENUES | $ | 10,871 | $ | 10,357 | 5 | % | 8 | % | $ | 34,476 | $ | 32,194 | 7 | % | 7 | % | ||||||||||
TOTAL NIKE BRAND | ||||||||||||||||||||||||||
Footwear | $ | 6,660 | $ | 6,505 | 2 | % | 5 | % | $ | 21,158 | $ | 20,074 | 5 | % | 5 | % | ||||||||||
Apparel | 3,232 | 2,966 | 9 | % | 12 | % | 10,330 | 9,426 | 10 | % | 9 | % | ||||||||||||||
Equipment | 390 | 296 | 32 | % | 36 | % | 1,237 | 1,014 | 22 | % | 21 | % | ||||||||||||||
Global Brand Divisions2 | 41 | 6 | 583 | % | 561 | % | 54 | 18 | 200 | % | 206 | % | ||||||||||||||
TOTAL NIKE BRAND REVENUES | $ | 10,323 | $ | 9,773 | 6 | % | 8 | % | $ | 32,779 | $ | 30,532 | 7 | % | 7 | % | ||||||||||
1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company’s underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. | ||||||||||||||||||||||||||
2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. | ||||||||||||||||||||||||||
3 Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company’s central foreign exchange risk management program. |
NIKE, Inc. | ||||||||||||||||||||
EARNINGS BEFORE INTEREST AND TAXES1 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
THREE MONTHS ENDED | % | NINE MONTHS ENDED | % | |||||||||||||||||
(Dollars in millions) | 2/28/2022 | 2/28/2021 | Change | 2/28/2022 | 2/28/2021 | Change | ||||||||||||||
North America | $ | 967 | $ | 970 | 0 | % | $ | 3,636 | $ | 3,295 | 10 | % | ||||||||
Europe, Middle East & Africa | 713 | 533 | 34 | % | 2,394 | 1,885 | 27 | % | ||||||||||||
Greater China | 784 | 973 | -19 | % | 2,054 | 2,552 | -20 | % | ||||||||||||
Asia Pacific & Latin America | 478 | 408 | 17 | % | 1,347 | 1,112 | 21 | % | ||||||||||||
Global Brand Divisions2 | (975) | (852) | -14 | % | (3,033) | (2,546) | -19 | % | ||||||||||||
TOTAL NIKE BRAND1 | 1,967 | 2,032 | -3 | % | 6,398 | 6,298 | 2 | % | ||||||||||||
Converse | 168 | 150 | 12 | % | 504 | 405 | 24 | % | ||||||||||||
Corporate3 | (412) | (482) | 15 | % | (1,460) | (1,697) | 14 | % | ||||||||||||
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES1 | 1,723 | 1,700 | 1 | % | 5,442 | 5,006 | 9 | % | ||||||||||||
EBIT margin1 | 15.8 | % | 16.4 | % | 15.8 | % | 15.5 | % | ||||||||||||
Interest expense (income), net | 53 | 64 | — | 165 | 199 | — | ||||||||||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 1,670 | $ | 1,636 | 2 | % | $ | 5,277 | $ | 4,807 | 10 | % | ||||||||
1 The Company evaluates the performance of individual operating segments based on earnings before interest and taxes (commonly referred to as “EBIT”), which represents net income before interest expense (income), net and income tax expense. Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin are considered non-GAAP financial measures and are being provided as management believes this additional information should be considered when assessing the Company’s underlying business performance and trends. EBIT margin is calculated as EBIT divided by total NIKE, Inc. Revenues. References to EBIT and EBIT margin should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. | ||||||||||||||||||||
2 Global Brand Divisions primarily represent demand creation and operating overhead expense, including product creation and design expenses that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. | ||||||||||||||||||||
3 Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company’s corporate headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses. |
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Cover Page Cover Page |
Mar. 21, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Mar. 21, 2022 |
Entity Registrant Name | NIKE, Inc. |
Entity Incorporation, State or Country Code | OR |
Entity File Number | 1-10635 |
Entity Tax Identification Number | 93-0584541 |
Entity Address, Address Line One | ONE BOWERMAN DRIVE |
Entity Address, City or Town | BEAVERTON |
Entity Address, State or Province | OR |
Entity Address, Postal Zip Code | 97005-6453 |
City Area Code | 503 |
Local Phone Number | 671-6453 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class B Common Stock |
Trading Symbol | NKE |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000320187 |
Amendment Flag | false |
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