Nike continues market supremacy with strong FY 2016 results

By

Obi Anyanwu

Published
Jun 29, 2016

Nike reported solid fourth quarter and fiscal year 2016 results on Tuesday, which was led by strong international demand.

 
Revenues for the full year period ended May 31, 2016 increased 6% to $32.4 billion, and rose 12% on a currency neutral basis. Nike brand revenues increased 13% to $30.5 billion and Converse revenues increased 2% to $2.0 billion.
 
Nike wholesale sales increased 9% on a currency-neutral basis and DTC revenues increased to $7.9 billion driven by a 51% increase in online sales, new stores and 10% growth in comparable sales.

Net income increased 15% to $3.8 million and diluted earnings per share increased 17% to $2.16. In fiscal 2016, the company repurchased a total of 55.4 million shares for $3.2 billion, at an average cost of $58.44.
 
“Our consistent growth is fueled by innovation, which is why fiscal 2016 was such a breakthrough year for Nike in everything we do,” said Mark Parker, President and CEO, Nike, Inc. “From product to manufacturing to how we serve our consumers – more personally and at scale – we’ve raised the bar of what’s possible. It’s a great time to be in sports, and the Nike Brand has never been stronger. Fueled by our unrivaled roster of athletes, fiscal 2017’s calendar of sport moments promises to build on our business momentum and inspire consumers.”
 
As of May 31, 2016, worldwide futures orders for the Nike brand was $14.9 billion, an 8% increase over last year’s comparable period, and 11% higher on a currency-neutral basis.
 
Also in fiscal 2016, Nike signed an $87 million apparel deal with the Chelsea FC football club, and co-founder Phil Knight announced that he would leave the brand in June.