Nike (NKE), a marketer and distributor of authentic athletic footwear, apparel, equipment and accessories globally, has reported 22.66 percent rise in profit for the quarter ended Nov. 30, 2014. The company has earned $655 million, or $0.74 a share in the quarter, compared with $534 million, or $0.59 a share for the same period last year. Revenue during the quarter grew 14.76 percent to $7,380 million from $6,431 million in the previous year period. Gross margin for the quarter expanded 114 basis points over the previous year period to 45.08 percent. Total expenses were 87.95 percent of quarterly revenues, down from 88.57 percent for the same period last year. This has led to an improvement of 62 basis points in operating margin to 12.05 percent.
Operating income for the quarter was $889 million, compared with $735 million in the previous year period.
"Our strong second quarter results once again demonstrate NIKE is a growth company," said Mark Parker, President and CEO of NIKE, Inc. "The power of our portfolio continues to unlock growth, as we keep a laser focus on our biggest opportunities. The breadth and depth of that portfolio has helped us consistently deliver strong results - quarter after quarter, year after year."
Working capital declines Nike has witnessed a decline in the working capital over the last year. It stood at $9,096 million as at Nov. 30, 2014, down 6.48 percent or $630 million from $9,726 million on Nov. 30, 2013. Current ratio was at 2.84 as on Nov. 30, 2014, down from 3.51 on Nov. 30, 2013.
Cash conversion cycle (CCC) has decreased to 47 days for the quarter from 96 days for the last year period. Days sales outstanding went down to 41 days for the quarter compared with 45 days for the same period last year.
Days inventory outstanding has decreased to 47 days for the quarter compared with 90 days for the previous year period. At the same time, days payable outstanding was almost stable at 41 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Nike has recorded a decline in total debt over the last one year. It stood at $1,194 million as on Nov. 30, 2014, down 1.16 percent or $14 million from $1,208 million on Nov. 30, 2013. Total debt was 6.23 percent of total assets as on Nov. 30, 2014, compared with 6.80 percent on Nov. 30, 2013. Debt to equity ratio was almost stable at 0.10 as on Nov. 30, 2014, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]