0000320187false00003201872023-09-282023-09-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

September 28, 2023
Date of Report (date of earliest event reported)

orangeswoosh17.jpg
NIKE, Inc.
(Exact name of registrant as specified in its charter)
Oregon
1-1063593-0584541
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)

ONE BOWERMAN DRIVE
BEAVERTON, OR 97005-6453
(Address of principal executive offices and zip code)

(503) 671-6453
Registrant's telephone number, including area code

NO CHANGE
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Class B Common StockNKENew York Stock Exchange
(Title of each class)(Trading Symbol)(Name of each exchange on which registered)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐



Item 2.02 Results of Operations and Financial Condition
Today NIKE, Inc. issued a press release disclosing financial results for the fiscal quarter ended August 31, 2023. The text of the release is furnished herewith as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

The following exhibits are furnished with this Form 8-K:

Exhibit No.Exhibit
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
   
NIKE, Inc.
(Registrant)
   
Date:
September 28, 2023
By:/s/   Matthew Friend
  Matthew Friend
  Executive Vice President and Chief Financial Officer
   



blackswoosh401er.jpg
Investor Contact:Media Contact:
Paul TrussellVirginia Rustique-Petteni
investor.relations@nike.com
media.relations@nike.com

NIKE, INC. REPORTS FISCAL 2024 FIRST QUARTER RESULTS

BEAVERTON, Ore., Sept. 28, 2023 — NIKE, Inc. (NYSE:NKE) today reported fiscal 2024 financial results for its first quarter ended August 31, 2023.

•First quarter revenues were $12.9 billion, up 2 percent compared to prior year on a reported and currency-neutral basis*
•NIKE Direct revenues were $5.4 billion, up 6 percent compared to prior year on a reported and currency-neutral basis with growth across all geographies
•NIKE Brand Digital sales increased 2 percent on a reported and currency-neutral basis
•Wholesale revenues were $7.0 billion, flat compared to prior year on a reported basis and up 1 percent on a currency-neutral basis
•Gross margin decreased 10 basis points to 44.2 percent
•Diluted earnings per share was $0.94 for the first quarter, up 1 percent

“Q1 offered proof of what NIKE can deliver when we connect great innovation, great storytelling and great marketplace experiences to consumers,” said John Donahoe, President & CEO, NIKE, Inc. “Moving forward, we are laser-focused on scaling these successes with greater consistency and speed as we continue to integrate and streamline our business. This is how we’ll extend our leadership position and drive growth over the long-term.”**

Matthew Friend, Executive Vice President & Chief Financial Officer, NIKE, Inc. said, “Our first-quarter results demonstrated the impact of staying on the offense over the past fiscal year. With a healthy marketplace and another quarter of brand and business momentum, we are strengthening our foundation for sustainable, profitable, long-term growth.”**

First Quarter Income Statement Review

•Revenues for NIKE, Inc. increased 2 percent on a reported and currency-neutral basis to $12.9 billion compared to the prior year.
◦Revenues for the NIKE Brand were $12.4 billion, up 3 percent on a reported and currency-neutral basis, led by currency-neutral growth in EMEA, Greater China and APLA, partially offset by a decline in North America.
◦Revenues for Converse were $588 million, down 9 percent on a reported and currency-neutral basis, due to a decline in North America, partially offset by growth in Asia.
•Gross margin decreased 10 basis points to 44.2 percent, primarily driven by higher product costs and unfavorable changes in net foreign currency exchange rates, largely offset by strategic pricing actions.
•Selling and administrative expense increased 5 percent to $4.1 billion.
◦Demand creation expense was $1.1 billion, up 13 percent, primarily due to advertising and marketing expense.
◦Operating overhead expense increased 2 percent to $3.0 billion, primarily due to wage-related expenses and NIKE Direct variable costs, partially offset by lower technology spend.
•The effective tax rate was 12.0 percent compared to 19.7 percent for the same period last year primarily due to a one-time benefit provided by the recent delay of the effective date of U.S. foreign tax regulations.
•Net income was $1.5 billion, down 1 percent, and Diluted earnings per share was $0.94, increasing 1 percent.

August 31, 2023 Balance Sheet Review

•Inventories for NIKE, Inc. were $8.7 billion, down 10 percent compared to the prior year, primarily driven by a decrease in units, partially offset by product mix and higher product input costs.
•Cash and equivalents and short-term investments were $8.8 billion, down approximately $3.1 billion from last year, as cash generated by operations was more than offset by share repurchases, cash dividends and capital expenditures.

Shareholder Returns

NIKE continues to have a strong track record of investing to fuel growth and consistently increasing returns to shareholders, including 21 consecutive years of increasing dividend payouts. In the first quarter, NIKE returned approximately $1.7 billion to shareholders, including:

•Dividends of $524 million, up 9 percent from the prior year.
•Share repurchases of $1.1 billion, reflecting 10.5 million shares retired as part of the Company’s four-year, $18 billion program approved by the Board of Directors in June 2022. As of August 31, 2023, a total of 54 million shares have been repurchased under the program for a total of approximately $5.9 billion.

Conference Call

NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on September 28, 2023, to review fiscal first quarter results. The conference call will be broadcast live via the Internet and can be accessed at https://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through approximately 11:00 p.m. PT, October 19, 2023.
About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.’s earnings releases and other financial information are available on the Internet at https://investors.nike.com. Individuals can also visit https://about.nike.com/en/newsroom and follow @NIKE.
*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.
(Tables Follow)


NIKE, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS ENDED%
(In millions, except per share data)8/31/20238/31/2022Change
Revenues$12,939 $12,687 2 %
Cost of sales7,219 7,072 2 %
Gross profit5,720 5,615 2 %
Gross margin44.2 %44.3 %
Demand creation expense1,069 943 13 %
Operating overhead expense3,047 2,977 2 %
Total selling and administrative expense4,116 3,920 5 %
% of revenues31.8 %30.9 %
Interest expense (income), net(34)13 — 
Other (income) expense, net(10)(146)— 
Income before income taxes1,648 1,828 -10 %
Income tax expense198 360 -45 %
Effective tax rate12.0 %19.7 %
NET INCOME$1,450 $1,468 -1 %
Earnings per common share:
Basic$0.95 $0.94 1 %
Diluted$0.94 $0.93 1 %
Weighted average common shares outstanding:
Basic1,528.4 1,567.1 
Diluted1,543.3 1,585.8 
Dividends declared per common share$0.340 $0.305 


NIKE, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
August 31,August 31,% Change
(Dollars in millions)20232022
ASSETS
Current assets:
Cash and equivalents$6,178 $7,226 -15 %
Short-term investments2,612 4,650 -44 %
Accounts receivable, net4,749 4,960 -4 %
Inventories8,698 9,662 -10 %
Prepaid expenses and other current assets2,013 2,379 -15 %
Total current assets24,250 28,877 -16 %
Property, plant and equipment, net5,109 4,778 7 %
Operating lease right-of-use assets, net2,939 2,880 2 %
Identifiable intangible assets, net272 283 -4 %
Goodwill281 282 0 %
Deferred income taxes and other assets3,935 3,988 -1 %
TOTAL ASSETS$36,786 $41,088 -10 %
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt$— $500 -100 %
Notes payable6 9 -33 %
Accounts payable2,738 3,371 -19 %
Current portion of operating lease liabilities435 424 3 %
Accrued liabilities4,987 6,277 -21 %
Income taxes payable295 338 -13 %
Total current liabilities8,461 10,919 -23 %
Long-term debt8,929 8,922 0 %
Operating lease liabilities2,807 2,736 3 %
Deferred income taxes and other liabilities2,618 2,689 -3 %
Redeemable preferred stock— — — 
Shareholders’ equity13,971 15,822 -12 %
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$36,786 $41,088 -10 %


NIKE, Inc.
DIVISIONAL REVENUES
(Unaudited)
% Change Excluding Currency Changes1
THREE MONTHS ENDED%
(Dollars in millions)8/31/20238/31/2022Change
North America
Footwear$3,733 $3,805 -2 %-2 %
Apparel1,479 1,494 -1 %-1 %
Equipment211 211 0 %0 %
Total5,423 5,510 -2 %-1 %
Europe, Middle East & Africa
Footwear2,260 2,012 12 %10 %
Apparel1,137 1,153 -1 %-3 %
Equipment213 168 27 %23 %
Total3,610 3,333 8 %6 %
Greater China
Footwear1,287 1,233 4 %11 %
Apparel401 374 7 %14 %
Equipment47 49 -4 %2 %
Total1,735 1,656 5 %12 %
Asia Pacific & Latin America
Footwear1,141 1,064 7 %7 %
Apparel371 413 -10 %-9 %
Equipment60 58 3 %3 %
Total1,572 1,535 2 %3 %
Global Brand Divisions2
13 14 -7 %1 %
TOTAL NIKE BRAND12,353 12,048 3 %3 %
Converse588 643 -9 %-9 %
Corporate3
(2)(4)— — 
TOTAL NIKE, INC. REVENUES$12,939 $12,687 2 %2 %
TOTAL NIKE BRAND
Footwear$8,421 $8,114 4 %4 %
Apparel3,388 3,434 -1 %-1 %
Equipment531 486 9 %9 %
Global Brand Divisions2
13 14 -7 %1 %
TOTAL NIKE BRAND REVENUES$12,353 $12,048 3 %3 %
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%
(Dollars in millions)8/31/20238/31/2022Change
North America$1,434 $1,377 4 %
Europe, Middle East & Africa930 975 -5 %
Greater China525 541 -3 %
Asia Pacific & Latin America414 500 -17 %
Global Brand Divisions2
(1,205)(1,187)-2 %
TOTAL NIKE BRAND1
2,098 2,206 -5 %
Converse167 209 -20 %
Corporate3
(651)(574)-13 %
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES1
1,614 1,841 -12 %
EBIT margin1
12.5 %14.5 %
Interest expense (income), net(34)13 — 
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES$1,648 $1,828 -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. Management uses these non-GAAP financial measures when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that 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.

v3.23.3
Cover Page Cover Page
Sep. 28, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Sep. 28, 2023
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
Nike (NYSE:NKE)
Historical Stock Chart
Von Mär 2024 bis Apr 2024 Click Here for more Nike Charts.
Nike (NYSE:NKE)
Historical Stock Chart
Von Apr 2023 bis Apr 2024 Click Here for more Nike Charts.