NIKE, Inc. (NKE) has reported a 7.26 percent rise in profit for the quarter ended Nov. 30, 2016. The company has earned $842 million, or $0.50 a share in the quarter, compared with $785 million, or $0.45 a share for the same period last year.
Revenue during the quarter grew 6.43 percent to $8,180 million from $7,686 million in the previous year period. Gross margin for the quarter contracted 134 basis points over the previous year period to 44.21 percent. Total expenses were 86.42 percent of quarterly revenues, down from 87.76 percent for the same period last year. This has led to an improvement of 134 basis points in operating margin to 13.58 percent.
Operating income for the quarter was $1,111 million, compared with $941 million in the previous year period.
"NIKE's ability to attack the opportunities that consistently drive growth over the near and long term is what sets us apart," said Mark Parker, chairman, president and chief executive officer, NIKE, Inc. "With industry-defining innovation platforms, highly anticipated signature basketball styles and more personalized retail experiences on the horizon, we are well-positioned to carry our momentum into the back half of the fiscal year and beyond."
Debt increases substantially
NIKE, Inc. has witnessed an increase in total debt over the last one year. It stood at $3,537 million as on Nov. 30, 2016, up 64.21 percent or $1,383 million from $2,154 million on Nov. 30, 2015. Total debt was 15.61 percent of total assets as on Nov. 30, 2016, compared with 9.54 percent on Nov. 30, 2015. Debt to equity ratio was at 0.29 as on Nov. 30, 2016, up from 0.16 as on Nov. 30, 2015.
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