Revenue by product

Revenue by location

Last quarter financial highlights

• Revenues for the NIKE Brand were $10.1 billion (+10%), driven by growth across NIKE Direct and wholesale, key categories including Sportswear and the Jordan Brand, and continued growth across footwear and apparel.

• Revenues for Converse were $555 million (+8%), mainly driven by double-digit growth in Asia and through digital globally, which was partially offset by declines in the U.S.

• Gross margin increased 150 basis points to 45.7% primarily due to higher average selling prices and margin expansion in NIKE Direct, partially offset by impacts from changes in foreign currency exchange rates and higher product costs.

• Selling and administrative expense increased 9% to $3.3 billion. Demand creation expense was $1.0 billion, up 6% primarily driven by higher advertising expenses and sports marketing investments. Operating overhead expense increased 10% to $2.3 billion driven by continued investments in transformational capabilities, particularly in NIKE Direct and global operations.

• The effective tax rate was 12.4%, compared to 14% for the same period last year, primarily due to discrete items which favorably impacted the quarter.

• Net income increased 25% to $1.4 billion driven primarily by strong revenue growth and gross margin expansion while diluted earnings per share increased 28% to $0.86 reflecting a 2% decline in the weighted average diluted common shares outstanding.

• Share Repurchases: During the first quarter, Nike repurchased 11.9 million shares for approximately $995 million as part of the four-year, $15 billion program approved by the Board of Directors in June 2018. As of August 31, 2019, a total of 23.5 million shares had been repurchased under this program for approximately $2.0 billion.

Nike revenue quarter by quarter

Nike operating expenses