Nike (NKE), a marketer and distributor of authentic athletic footwear, apparel, equipment and accessories globally, has reported a 23.93 percent rise in profit for the quarter ended May 31, 2015. The company has earned $865 million, or $0.98 a share in the quarter, compared with $698 million, or $0.78 a share for the same period last year. Revenue during the quarter grew 4.77 percent to $7,779 million from $7,425 million in the previous year period. Gross margin for the quarter expanded 60 basis points over the previous year period to 46.19 percent. Total expenses were 87.17 percent of quarterly revenues, down from 87.38 percent for the same period last year. This has led to an improvement of 21 basis points in operating margin to 12.83 percent.
Operating income for the quarter was $998 million, compared with $937 million in the previous year period.
"Fiscal 2015 was an outstanding year for NIKE," said Mark Parker, president and CEO, NIKE, Inc. "Our consistent growth is fueled by our connection to the consumer and our ability to deliver innovation at an unprecedented pace and scale. At no time in our history has the growth potential been greater for NIKE."
Working capital increases
Nike has recorded an increase in the working capital over the last year. It stood at $9,642 million as at May 31, 2015, up 11.22 percent or $973 million from $8,669 million on May 31, 2014. Current ratio was at 2.52 as on May 31, 2015, down from 2.72 on May 31, 2014. Debt comes down
Nike has recorded a decline in total debt over the last one year. It stood at $1,260 million as on May 31, 2015, down 8.23 percent or $113 million from $1,373 million on May 31, 2014. Total debt was 5.83 percent of total assets as on May 31, 2015, compared with 7.38 percent on May 31, 2014. Debt to equity ratio was at 0.10 as on May 31, 2015, down from 0.13 as on May 31, 2014.
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