LONDON, UK / ACCESSWIRE / October 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on NIKE, Inc. (NYSE: NKE), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=NKE, following the Company's reporting of its financial results on September 26, 2017, for the first quarter fiscal 2018 (Q1 FY18). The Beaverton, Oregon-based Company reported a flat revenues growth, while its diluted EPS declined 22% y-o-y; however, both results beat market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For the three months ended on August 31, 2017, NIKE recorded revenues of $9.07 billion compared to $9.06 billion recorded at the end of Q1 FY17. Revenues numbers topped market expectations of $9.06 billion. During the reported quarter, the Company's revenue growth in international geographies and NIKE Direct globally was offset by an expected decline in North America's wholesale revenue
The athletic apparel, footwear, and accessories retailer reported net income of $950 million, or $0.57 per diluted share, in Q1 FY18 compared to $1.25 billion, or $0.73 per diluted share, in the prior year's same period. Meanwhile, Wall Street had expected the Company to report adjusted net income of $0.48 per diluted share.
Operating Metrics
In the reported quarter, NIKE's cost of sales increased 3% to $5.11 billion from $4.94 billion in Q1 FY17. The Company's gross profit for Q1 FY18 came in at $3.96 billion, or 43.7% of revenues, compared to $4.12 billion, or 45.5% of revenues, in the year-ago same period. The decline in gross profit is primarily attributable to unfavorable changes in foreign currency exchange rates and a higher mix of off-price sales. Meanwhile, the Company's total selling and administrative expense were down by 1% in Q1 FY18 to $2.86 billion from $2.90 billion Q1 FY17. The Company's income before income taxes for Q1 FY18 stood at $1.07 billion versus $1.28 billion in the first quarter of FY17.
NIKE's Divisional Revenues
North America - The Company's North America total revenues fell from $3.92 billion in Q1 FY17 to $4.03 billion in the reported quarter. The division's footwear's revenues were $2.43 billion in Q1 FY18 compared to $2.52 billion in Q1 FY17. Apparel sales' revenues came in at $1.30 billion for Q1 FY18 versus $1.32 billion in the year-ago same quarter. Furthermore, equipment's revenues were also down to $191 million in Q1 FY18 from $196 million in Q1 FY17.
Europe, Middle-East, and Africa (EMEA) - During Q1 FY18, EMEA division reported total revenues of $2.34 billion compared to $2.26 billion recorded in the prior year's same quarter. In Q1 FY18, the division's footwear revenues were $1.47 billion compared to $1.46 billion in Q1 FY17. Apparel's sales revenues rose 9% in Q1 FY18 to $743 million in Q1 FY17. Furthermore, Equipment's sale revenues grew 7% to $130 million y-o-y in the reported quarter.
Greater China - The Greater China division's total revenues were $1.11 billion in Q1 FY18, which came in 9% above the $1.02 billion reported in Q1 FY17. In the reported quarter, the division's Apparel's sales revenues were $309 million, up 15% from $269 million in Q1 FY17. Footwear's sales revenues grew 7% y-o-y to $761 million in Q1 FY18. Meanwhile, Equipment's sales revenues fell 7% to $38 million y-o-y.
Asia/Pacific & Latin America - This division's revenues increased from $1.13 billion in Q1 FY17 to $1.19 billion in Q1 FY18. The division's Footwear's revenues grew 5% to $827 million in Q1 FY18 from $787 million of division revenues in the year-ago same period. Apparel's revenues also rose 8% y-o-y to stand at $301 million for the reported quarter. However, Equipment's sales revenues were down by 6% to $61 million y-o-y in Q1 FY18.
Balance Sheet
NIKE had cash and cash equivalents balance of $3.41 billion as on August 31, 2017, versus $2.66 billion at the close of books on August 31, 2016. The Company's long-term debt stood at $3.47 billion as on August 31, 2017, compared to $1.99 billion as on August 31, 2016. Additionally, the Company had inventories of $5.21 billion as on August 31, 2017, compared to $4.90 billion as on August 31, 2016.
Share Repurchase
During Q1 FY18, the Company bought back a total of 15.3 million shares for approximately $849 million under its four-year, $12 billion Board-approved share repurchase program of November 2015. Furthermore, the Company has repurchased 95.0 million shares for approximately $5.3 billion as of August 31, 2017.
Stock Performance
NIKE's share price finished yesterday's trading session at $52.18, slightly advancing 0.19%. A total volume of 5.18 million shares have exchanged hands. In the last twelve months, shares of the Company have advanced 0.12%. The stock gained 2.66% since the start of the year. Shares of the Company have a PE ratio of 20.83 and have a dividend yield of 1.38%. The stock currently has a market cap of $86.94 billion.
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