Strong demand for NIKE Inc brands has propelled the company’s fiscal first quarter revenue ended 31 August 2012 to new record highs.
Revenues in the quarter for NIKE Inc increased 10% to US$6.7 billion, up 15% on a currency-neutral basis. Excluding the impact of changes in foreign currency, NIKE Brand revenues rose 16%, with growth in all key categories and every geography except Japan.
“We had a strong first quarter and a great start to the fiscal year,” said Mark Parker, President and CEO at NIKE Inc. “NIKE Inc delivered an amazing array of innovation across some of the biggest moments in sport.”
Innovation is how great companies sustain growth and build competitive separation,” Parker added. “We’ll continue to make strategic investments across our portfolio of businesses to capture our full potential over the long term and drive shareholder value.”
Inventories for NIKE Inc. were US$3.4 billion, up 10% year on year. This is in line with revenue growth, and, as the company notes, reflects strong demand for NIKE Inc products.
During its fiscal first quarter, NIKE repurchased a total of 8.2 million shares for approximately US$779 million, as part of its four-year, US$5 billion share repurchase program, approved by the Board of Directors in September 2008. As of the end of the first quarter, the company has purchased a total of 58.5 million shares for approximately US$4.9 billion under this program.
Earlier this month, NIKE confirmed that its Board of Directors had approved a new four-year, US$8 billion program to repurchase shares. During the second quarter of fiscal 2013 the company’s current US$5 billion share repurchase program was completed, and the new program commenced.
As at the end of NIKE’s fiscal Q1, worldwide futures orders for NIKE Brand athletic footwear and apparel, scheduled for delivery from September 2012 through to January 2013, totalled US$8.9 billion. This is 6% higher than orders reported for the same period last year. Excluding currency changes, reported orders would have increased 8%.