American sportswear giant, Nike has unveiled financial results for the fiscal year ended May 31, 2016.
In the period under review, the retailer reported that its net income zoomed 15 per cent year-over-year to US $ 3.8 billion. The growth is attributed to strong global revenue growth, gross margin expansion and a lower tax rate. Besides, Nike’s diluted earnings per share climbed 17 per cent to US $ 2.16 in the reporting year. The effective tax rate was 18.7 per cent compared with 22.2 per cent in the prior FY, due to surge in the proportion of earnings from operations outside of the USA.
Nike’s revenues for reporting year increased by 6 per cent as compared to the previous fiscal year to US $ 32.4 billion, but grew higher at 12 per cent on a currency-neutral basis. Its gross margin increased by 20 basis points to 46.2 per cent, predominantly driven by higher average selling prices and growth in the higher margin in direct-to-consumer business. Other income for the reporting fiscal stood at US $ 140 million.
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Particularly in the fourth quarter of the year, the retailer’s revenues rose 6 per cent to US $ 8.2 billion, up 9 per cent on a currency-neutral basis. “Our consistent growth is fuelled by innovation, which is why fiscal 2016 was such a breakthrough year for Nike in everything we do. 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. Fuelled by our unrivalled roster of athletes, fiscal 2017’s calendar of sport moments promises to build on our business momentum and inspire consumers,” said Mark Parker, President and CEO, Nike