Nike financial performance 2018 versus 2017

Financial Performance of Nike in FY 2018 compared with FY 2017. 

NIke’s revenue grew by 6% in 2018 compared to 2017. Total revenue of Nike Inc in 2017 was $34.35 billion which grew to $36.4 billion in 2018. On a currency neutral basis revenues grew by 4% driven by growth in the sales of Nike branded products. Revenue from the international markets grew higher in 2018.

Apart from Greater China, revenue of Nike brand also grew from EMEA and Asia Pacific Latin America (APLA) driven by growth in demand due to innovative products and higher customer engagement. However, in North America both sales and revenue declined. Revenue from Footwear and equipment sales in North America declined by 4% and 8% respectively in 2018 compared to the previous year.

Nike Consolidated Operating Results

Nike Performance by Product category:

Nike brand revenues grew across footwear and apparel segment overall but saw a decline of 2% in equiment category. 

Nike revenue from Footwear grew by 6% from $21.1 billion in 2017 to $22.3 billion in 2018. On a currency neutral basis, the growth was of 4%.

In the apparel category, the revenue growth was that of around 11% and on a currency neutral basis that of 9%. Total Revenue from apparel grew from $9.65 billion in 2017 to $10.7 billion in 2018.

Nike revenue from equipment declined by 2% and by 4% on a currency neutral basis. It came down from $1,425 million in 2018 to $1,396 milion in 2017.

Total Revenue of Nike from Nike Brand products was $34.5 billion in 2018 compared to $32.23 billion in 2017, a growth of around 7% and around 5% on a currency neutral basis.

On the other hand, revenue from Converse declined by around 8% and around 11% on a currency neutral basis. Total revenue of Nike from Converse was $1.89 billion in 2018 compared to $2.042 billion in 2017. 

Nike performance by customer segment :-

Sales of Nike improved across nearly all customer segments including men, women and young athletes.

Total Nike brand wholesale equivalent revenues grew by around 6% (4% on a currency neutral basis), rising from $28,694 million in 2017 to $30,301 million in 2018.

Revenues from Men’s products grew by around 7% (5% on a currency neutral basis). Nike brand wholesale equivalent revenues from men’s category grew from $16,041 million in 2017 to $17,114 million in 2018. 

Reveues from women’s products grew by around 4% (2% on currency neutral basis). Nike brand wholesale equivalent revenues from women’s category grew from $6,644 million in 2017 to $6,915 million in 2018.

Nike’s revenues from products for young athletes grew by 1% (1% decline on a currency neutral basis). Nike brand wholesale equivalent revenues from products for young athletes grew from $4,838 million to $4,906 million in 2018. 

Revenue from other Nike products grew by 17% (13% on currency neutral basis). Nike brand wholesale equivalent revenues from the other products grew from $1,171 million in 2017 to $1,366 million in 2018.

Nike Revenue by Sports Category :-

Nike’s revenue from running category grew by 7% from 2017 to 2018 (5% on a currency neutral basis).  Nike brand wholesale equivalent revenue from running products grew to $5.2 billion in 2018 from $4.9 billion in 2017.

In the basketball category revenue grew by around 16% from 2017 to 2018 (14% on a currency neutral basis).  Nike brand wholesale equivalent revenue from Basketball products grew to $1.5 billion in 2018 from $1.3 billion in 2017. 

Revenue from Jordan brand fell by around 8% (9% decline on a  currency neutral basis). Nike brand wholesale enquialent revenue from Jordan came down to $2.9 billion in 2018 from $3.1 billion in 2017. 

Revenue from football products grew by around 8% (5% on a currency neutral basis). Nike brand wholesale equivalent revenue from football (soccer) products grew from $1.98 billion to $2.15 billion.

Revenue from training products grew by around 1% (remained flat on a currency neutral basis). Nike brand wholesale equivalent revenue from training products grew from $3,080 million in 2017 to $3,126 million in 2018.

Revenue from sportswear saw signficant growth from 2017 to 2018.  This category saw a growth of around 11% (8% on currency neutral basis) rising from $8.99 billion in 2017 to $10 billion in 2018. 

Revnue from others grew by 1% (flat on currency neutral basis) from 2017 to 2018. Nike brand wholesale equivalent revenues grew from $5,392 million in 2017 to $5,463 million in 2018.

Revenue by Geographical Region:

Revenue from North America declined by 2% in 2018 compared to 2017. North America revenue came down from $ 15,216 million in 2017 to $ 14,855 million in 2018.

Revenue from Europe, Middle East & Africa grew by 16% from 2017 to 2018 (9% on a currency neutral basis). Revenue from EMEA grew from $7,970 million in 2017 to $9,242 in 2018. 

Revenue from Greater China grew by around 21% in 2018 comared to 2017 (18% on a currency neutral basis). Greater China revenue of Nike grew from $4,237 million in 2017 to $5,134 million in 2018.

Revenue from Asia Pacific & Latin America grew by 9% (10% on a currency neutral basis). APLA revenue of Nike grew from $4,737 million in 2017 to $5,166 million in 2018. 

Gross Profit & Gross Margin:

Gross Profit of Nike grew by around 4% from 2017 to 2018 rising from $15,312 million to $15,956 million in 2018.

Gross Margin of Nike came down by around 80 basis points from 2017 to 2018 falling from 44.6% in 2017 to 43.8% in 2018.

Net Income of Nike declined by around 54% from 2017 to 2018 coming down from $4,240 million in 2017 to $1,933 million in 2018.

Nike Annual Report 2018 (form 10K).