Business Wire | Jun 24, 2021 04:15PM EDT

NIKE, Inc. Reports Fiscal 2021 Fourth Quarter and Full Year Results

Jun. 24, 2021

BEAVERTON, Ore.--(BUSINESS WIRE)--Jun. 24, 2021--NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal 2021 fourth quarter and full year ended May 31, 2021.

* Fourth quarter reported revenues were $12.3 billion, up 96 percent compared to prior year and increasing 21 percent compared to the fourth quarter of 2019. * Full year reported revenues increased 19 percent to $44.5 billion. * NIKE Direct fourth quarter sales increased 73 percent to $4.5 billion. * Gross margin for the fourth quarter increased 850 basis points to 45.8 percent. * Diluted earnings per share for the fourth quarter was $0.93 and for the full year was $3.56.

"NIKE's strong results this quarter and full fiscal year demonstrate NIKE's unique competitive advantage and deep connection with consumers all over the world," said John Donahoe, President & CEO, NIKE, Inc. "FY21 was a pivotal year for NIKE as we brought our Consumer Direct Acceleration strategy to life across the marketplace. Fueled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for NIKE's long-term growth." *

Our fourth quarter revenue growth was led by higher wholesale shipments due to the annualization of COVID-19 related physical retail closures in the prior year in North America, EMEA and APLA. As physical retail re-opened, NIKE Brand Digital continued to deliver strong revenue growth of 41 percent versus prior year and 147 percent compared to the fourth quarter of 2019.

North America delivered record revenues, up 141 percent on a reported basis for the fourth quarter, up 29 percent compared to the fourth quarter of 2019, including increased wholesale revenue due to delayed shipments from the previous quarter. As markets re-opened and sport returned, North America Digital growth continued to be strong, increasing 54 percent versus prior year and 177 percent compared to the fourth quarter of 2019.

EMEA's fourth quarter reported revenues increased 124 percent, up 21 percent compared to the fourth quarter of 2019, despite temporary COVID-19 related store closures throughout the quarter. As physical retail was temporarily closed, EMEA Digital fourth quarter sales increased 40 percent, or 170 percent compared to the fourth quarter of 2019. Today, approximately 99 percent of stores in EMEA are open or operating on reduced hours.

Our full year NIKE, Inc. revenues increased 19 percent on a reported basis or 14 percent compared to fiscal year 2019, reflecting growth across all Geographies and Converse, including seven consecutive years of double-digit, currency-neutral** growth for our Greater China business.

"NIKE's brand momentum is a testament to our authentic consumer connections, digital strength and continued operational execution," said Matt Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. "As we advance our consumer-led digital transformation, we are building a new financial model that will continue to fuel long-term sustainable, profitable growth for NIKE." *

Fourth Quarter Income Statement Review

* Revenues for NIKE, Inc. rose 96 percent to $12.3 billion, up 88 percent on a currency-neutral basis, largely driven by the recovery of our business operations due to the impact of COVID-19 in the prior year. Revenues for the NIKE Brand were $11.8 billion, up 88 percent to prior year on a currency-neutral basis, driven by triple-digit growth in our wholesale business and strong double-digit growth in NIKE Direct. Revenues for Converse were $596 million, up 85 percent on a currency-neutral basis, led by strong marketplace demand in North America and Western Europe. * Gross margin increased 850 basis points to 45.8 percent, primarily due to annualizing the impacts of COVID-19 including lower factory cancellation charges, lower inventory obsolescence reserves as well as the favorable rate impact of supply chain fixed costs on a higher volume of wholesale shipments. The increase in gross margin also reflects favorable margins in our NIKE Direct business. * Selling and administrative expense increased 17 percent to $3.7 billion. Demand creation expense was $997 million, up 21 percent, primarily due to the return of sport and brand events driving increased advertising and marketing expense as well as digital marketing investments. Operating overhead expense increased 16 percent to $2.7 billion, due to an increase in wage-related expenses, higher strategic technology investments and NIKE Direct variable costs, partially offset by lower bad debt expense. * The effective tax rate was 18.6 percent compared to 1.7 percent for the same period last year, caused by a change in the proportion of earnings taxed in the U.S. related to recovery from the impact of COVID-19 and decreased benefits from discrete items. * Net income was $1.5 billion, and Diluted earnings per share was $0.93 compared to a net loss for the fourth quarter of 2020 of $790 million and a net loss per share of $0.51.

Fiscal 2021 Income Statement Review

* Revenues for NIKE, Inc. increased 19 percent to $44.5 billion, up 17 percent on a currency-neutral basis. Revenues for the NIKE Brand were $42.3 billion, up 17 percent on a currency-neutral basis, driven by growth across NIKE Direct and wholesale, double-digit growth across footwear and apparel, with growth led by Sportswear and the Jordan Brand. NIKE Direct revenues were $16.4 billion, up 32 percent, or 30 percent on a currency-neutral basis, led by 64 percent, or 60 percent on a currency-neutral basis, growth in NIKE Brand Digital, with all geographies growing strong double-digits. Despite temporary store closures across the marketplace due to COVID-19, comparable store sales grew 4 percent. Revenues for Converse were $2.2 billion, up 16 percent on a currency-neutral basis, led by strong double-digit sales growth in our digital business. * Gross margin increased 140 basis points to 44.8 percent, primarily due to annualizing the impacts of COVID-19 including lower factory cancellation charges, lower inventory obsolescence reserves as well as the favorable rate impact of supply chain fixed costs on a higher volume of wholesale shipments. The increase in gross margin also reflects higher full-price product margins across wholesale and NIKE Direct. * Selling and administrative expense decreased 1 percent to $13.0 billion. Demand creation expense was $3.1 billion, down 13 percent to prior year, primarily due to lower marketing and advertising expenses for our brand events and retail operations, as well as lower sports marketing expenses as sporting events were postponed due to COVID-19. This activity was partially offset by higher digital marketing investments. Operating overhead expense increased 4 percent to $9.9 billion due to an increase in strategic technology investments, higher NIKE Direct variable costs and approximately $260 million in restructuring-related costs, partially offset by lower bad debt expense and lower travel and related expenses. * The effective tax rate was 14 percent, compared to 12.1 percent for the same period last year, due to decreased benefits from discrete items such as stock-based compensation. * Net income was $5.7 billion, and Diluted earnings per share was $3.56, up 123 percent.

May 31, 2021 Balance Sheet Review

* Inventories for NIKE, Inc. were $6.9 billion, down 7 percent compared to the prior year period, driven by strong consumer demand as we return to healthy inventory levels across markets closed in the prior year due to COVID-19. * Cash and equivalents and short-term investments were $13.5 billion, $4.7 billion higher than last year, primarily due to proceeds from net income partially offset by cash dividends.

Shareholder Returns

NIKE has a strong track record of investing to fuel growth and consistently increasing returns to shareholders through dividends and share repurchases, including 19 consecutive years of increasing dividend payouts. In fiscal 2021, the Company returned approximately $2.3 billion to shareholders, including:

* Dividends of $1.6 billion, compared with $1.5 billion in fiscal 2020. * Share repurchases totaling approximately $650 million for fiscal 2021, reflecting 4.9 million shares retired as part of the four-year, $15 billion program approved by the Board of Directors in June 2018.

During the fourth quarter of 2021, NIKE, Inc. resumed share repurchase activity. As of May 31, 2021, a total of 50 million shares for $4.7 billion had been repurchased under this program.

Conference Call

NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on June 24, 2021, to review fiscal fourth quarter and full year results. The conference call will be broadcast live via the Internet and can be accessed at http://investors.nike.com. For those unable to listen to the live broadcast, an archived version will be available at the same location through 9:00 p.m. PT, July 15, 2021.

About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.'s earnings releases and other financial information are available on the Internet at http://investors.nike.com. Individuals can also visit http://news.nike.com and follow @NIKE.

The marked paragraphs contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially.* These risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.

See additional information in the accompanying Divisional Revenues table or** the Supplemental NIKE Brand Revenue table regarding this non-GAAP financial measure.

NIKE, Inc.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

THREE MONTHS ENDED

%

TWELVE MONTHS ENDED

%

(In millions, except per share data)

5/31/2021

5/31/2020

Change

5/31/2021

5/31/2020

Change

Revenues

$

12,344

$

6,313

96

%

$

44,538

$

37,403

19

%

Cost of sales

6,689

3,960

69

%

24,576

21,162

16

%

Gross profit

5,655

2,353

140

%

19,962

16,241

23

%

Gross margin

45.8

%

37.3

%

44.8

%

43.4

%

Demand creation expense

997

823

21

%

3,114

3,592

-13

%

Operating overhead expense

2,745

2,368

16

%

9,911

9,534

4

%

Total selling and administrative expense

3,742

3,191

17

%

13,025

13,126

-1

%

% of revenues

30.3

%

50.5

%

29.2

%

35.1

%

Interest expense (income), net

63

50

-

262

89

-

Other (income) expense, net

(4

)

(84

)

-

14

139

-

Income (loss) before income taxes

1,854

(804

)

331

%

6,661

2,887

131

%

Income tax expense (benefit)

345

(14

)

2,564

%

934

348

168

%

Effective tax rate

18.6

%

1.7

%

14.0

%

12.1

%

NET INCOME (LOSS)

$

1,509

$

(790

)

291

%

$

5,727

$

2,539

126

%

Earnings (loss) per common share:

Basic

$

0.96

$

(0.51

)

288

%

$

3.64

$

1.63

123

%

Diluted

$

0.93

$

(0.51

)

282

%

$

3.56

$

1.60

123

%

Weighted average common shares outstanding:

Basic

1,579.0

1,555.7

1,573.0

1,558.8

Diluted

1,614.9

1,555.7

1,609.4

1,591.6

Dividends declared per common share

$

0.275

$

0.245

$

1.070

$

0.955

NIKE, Inc.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)





THREE MONTHS ENDED % TWELVE MONTHS ENDED %

(In millions,except per share 5/31/2021 5/31/2020 Change 5/31/2021 5/31/2020 Changedata)

Revenues $ 12,344 $ 6,313 96 % $ 44,538 $ 37,403 19 %

Cost of sales 6,689 3,960 69 % 24,576 21,162 16 %

Gross profit 5,655 2,353 140 % 19,962 16,241 23 %

Gross margin 45.8 % 37.3 % 44.8 % 43.4 %



Demand creation 997 823 21 % 3,114 3,592 -13 %expense

Operating 2,745 2,368 16 % 9,911 9,534 4 %overhead expense

Total selling andadministrative 3,742 3,191 17 % 13,025 13,126 -1 %expense

% of revenues 30.3 % 50.5 % 29.2 % 35.1 %



Interest expense 63 50 - 262 89 - (income), net

Other (income) (4 ) (84 ) - 14 139 - expense, net

Income (loss)before income 1,854 (804 ) 331 % 6,661 2,887 131 %taxes

Income tax 345 (14 ) 2,564 % 934 348 168 %expense (benefit)

Effective tax 18.6 % 1.7 % 14.0 % 12.1 % rate



NET INCOME (LOSS) $ 1,509 $ (790 ) 291 % $ 5,727 $ 2,539 126 %



Earnings (loss) per common share:

Basic $ 0.96 $ (0.51 ) 288 % $ 3.64 $ 1.63 123 %

Diluted $ 0.93 $ (0.51 ) 282 % $ 3.56 $ 1.60 123 %



Weighted averagecommon shares outstanding:

Basic 1,579.0 1,555.7 1,573.0 1,558.8

Diluted 1,614.9 1,555.7 1,609.4 1,591.6



Dividendsdeclared per $ 0.275 $ 0.245 $ 1.070 $ 0.955 common share

NIKE, Inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

May 31,

May 31,

% Change

(Dollars in millions)

2021

2020

ASSETS

Current assets:

Cash and equivalents

$

9,889

$

8,348

18

%

Short-term investments

3,587

439

717

%

Accounts receivable, net

4,463

2,749

62

%

Inventories

6,854

7,367

-7

%

Prepaid expenses and other current assets

1,498

1,653

-9

%

Total current assets

26,291

20,556

28

%

Property, plant and equipment, net

4,904

4,866

1

%

Operating lease right-of-use assets, net

3,113

3,097

1

%

Identifiable intangible assets, net

269

274

-2

%

Goodwill

242

223

9

%

Deferred income taxes and other assets

2,921

2,326

26

%

TOTAL ASSETS

$

37,740

$

31,342

20

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

$

-

$

3

-100

%

Notes payable

2

248

-99

%

Accounts payable

2,836

2,248

26

%

Current portion of operating lease liabilities

467

445

5

%

Accrued liabilities

6,063

5,184

17

%

Income taxes payable

306

156

96

%

Total current liabilities

9,674

8,284

17

%

Long-term debt

9,413

9,406

0

%

Operating lease liabilities

2,931

2,913

1

%

Deferred income taxes and other liabilities

2,955

2,684

10

%

Redeemable preferred stock

-

-

-

Shareholders' equity

12,767

8,055

58

%

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

37,740

$

31,342

20

%

NIKE, Inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited)



May 31, May 31, % Change(Dollars in millions) 2021 2020

ASSETS

Current assets:

Cash and equivalents $ 9,889 $ 8,348 18 %

Short-term investments 3,587 439 717 %

Accounts receivable, net 4,463 2,749 62 %

Inventories 6,854 7,367 -7 %

Prepaid expenses and other current assets 1,498 1,653 -9 %

Total current assets 26,291 20,556 28 %

Property, plant and equipment, net 4,904 4,866 1 %

Operating lease right-of-use assets, net 3,113 3,097 1 %

Identifiable intangible assets, net 269 274 -2 %

Goodwill 242 223 9 %

Deferred income taxes and other assets 2,921 2,326 26 %

TOTAL ASSETS $ 37,740 $ 31,342 20 %

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt $ - $ 3 -100 %

Notes payable 2 248 -99 %

Accounts payable 2,836 2,248 26 %

Current portion of operating lease liabilities 467 445 5 %

Accrued liabilities 6,063 5,184 17 %

Income taxes payable 306 156 96 %

Total current liabilities 9,674 8,284 17 %

Long-term debt 9,413 9,406 0 %

Operating lease liabilities 2,931 2,913 1 %

Deferred income taxes and other liabilities 2,955 2,684 10 %

Redeemable preferred stock - - -

Shareholders' equity 12,767 8,055 58 %

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 37,740 $ 31,342 20 %

NIKE, Inc.

DIVISIONAL REVENUES

(Unaudited)

% Change Excluding Currency Changes1

% Change Excluding Currency Changes1

THREE MONTHS ENDED

%

TWELVE MONTHS ENDED

%

(Dollars in millions)

5/31/2021

5/31/2020

Change

5/31/2021

5/31/2020

Change

North America

Footwear

$

3,793

$

1,606

136

%

136

%

$

11,644

$

9,329

25

%

25

%

Apparel

1,448

563

157

%

156

%

5,028

4,639

8

%

8

%

Equipment

143

61

134

%

132

%

507

516

-2

%

-2

%

Total

5,384

2,230

141

%

141

%

17,179

14,484

19

%

19

%

Europe, Middle East & Africa

Footwear

1,831

887

106

%

90

%

6,970

5,892

18

%

13

%

Apparel

1,023

398

157

%

137

%

3,996

3,053

31

%

25

%

Equipment

125

43

191

%

172

%

490

402

22

%

19

%

Total

2,979

1,328

124

%

107

%

11,456

9,347

23

%

17

%

Greater China

Footwear

1,316

1,149

15

%

6

%

5,748

4,635

24

%

19

%

Apparel

572

468

22

%

13

%

2,347

1,896

24

%

19

%

Equipment

45

30

50

%

34

%

195

148

32

%

26

%

Total

1,933

1,647

17

%

9

%

8,290

6,679

24

%

19

%

Asia Pacific & Latin America

Footwear

1,007

559

80

%

75

%

3,659

3,449

6

%

8

%

Apparel

396

211

88

%

80

%

1,494

1,365

9

%

10

%

Equipment

55

31

77

%

74

%

190

214

-11

%

-9

%

Total

1,458

801

82

%

76

%

5,343

5,028

6

%

8

%

Global Brand Divisions2

7

6

17

%

24

%

25

30

-17

%

-17

%

TOTAL NIKE BRAND

11,761

6,012

96

%

88

%

42,293

35,568

19

%

17

%

Converse

596

305

95

%

85

%

2,205

1,846

19

%

16

%

Corporate3

(13

)

(4

)

-

-

40

(11

)

-

-

TOTAL NIKE, INC. REVENUES

$

12,344

$

6,313

96

%

88

%

$

44,538

$

37,403

19

%

17

%

TOTAL NIKE BRAND

Footwear

$

7,947

$

4,201

89

%

83

%

$

28,021

$

23,305

20

%

18

%

Apparel

3,439

1,640

110

%

101

%

12,865

10,953

17

%

15

%

Equipment

368

165

123

%

113

%

1,382

1,280

8

%

7

%

Global Brand Divisions2

7

6

17

%

24

%

25

30

-17

%

-17

%

TOTAL NIKE BRAND REVENUES

$

11,761

$

6,012

96

%

88

%

$

42,293

$

35,568

19

%

17

%

1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.

2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

3 Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through the Company's central foreign exchange risk management program.

NIKE, Inc.

DIVISIONAL REVENUES

(Unaudited)





THREE MONTHS % % Change TWELVE MONTHS % % Change ENDED Excluding ENDED Excluding Currency Currency(Dollars Changes^1 Changes^1in 5/31/2021 5/31/2020 Change 5/31/2021 5/31/2020 Changemillions)

North America

Footwear $ 3,793 $ 1,606 136 % 136 % $ 11,644 $ 9,329 25 % 25 %

Apparel 1,448 563 157 % 156 % 5,028 4,639 8 % 8 %

Equipment 143 61 134 % 132 % 507 516 -2 % -2 %

Total 5,384 2,230 141 % 141 % 17,179 14,484 19 % 19 %

Europe,Middle East &Africa

Footwear 1,831 887 106 % 90 % 6,970 5,892 18 % 13 %

Apparel 1,023 398 157 % 137 % 3,996 3,053 31 % 25 %

Equipment 125 43 191 % 172 % 490 402 22 % 19 %

Total 2,979 1,328 124 % 107 % 11,456 9,347 23 % 17 %

Greater China

Footwear 1,316 1,149 15 % 6 % 5,748 4,635 24 % 19 %

Apparel 572 468 22 % 13 % 2,347 1,896 24 % 19 %

Equipment 45 30 50 % 34 % 195 148 32 % 26 %

Total 1,933 1,647 17 % 9 % 8,290 6,679 24 % 19 %

AsiaPacific & LatinAmerica

Footwear 1,007 559 80 % 75 % 3,659 3,449 6 % 8 %

Apparel 396 211 88 % 80 % 1,494 1,365 9 % 10 %

Equipment 55 31 77 % 74 % 190 214 -11 % -9 %

Total 1,458 801 82 % 76 % 5,343 5,028 6 % 8 %

GlobalBrand 7 6 17 % 24 % 25 30 -17 % -17 %Divisions^2

TOTAL NIKE 11,761 6,012 96 % 88 % 42,293 35,568 19 % 17 %BRAND

Converse 596 305 95 % 85 % 2,205 1,846 19 % 16 %

Corporate^ (13 ) (4 ) - - 40 (11 ) - - 3

TOTALNIKE, INC. $ 12,344 $ 6,313 96 % 88 % $ 44,538 $ 37,403 19 % 17 %REVENUES



TOTAL NIKE BRAND

Footwear $ 7,947 $ 4,201 89 % 83 % $ 28,021 $ 23,305 20 % 18 %

Apparel 3,439 1,640 110 % 101 % 12,865 10,953 17 % 15 %

Equipment 368 165 123 % 113 % 1,382 1,280 8 % 7 %

GlobalBrand 7 6 17 % 24 % 25 30 -17 % -17 %Divisions^2

TOTAL NIKEBRAND $ 11,761 $ 6,012 96 % 88 % $ 42,293 $ 35,568 19 % 17 %REVENUES

^1 The percent change has been calculated using actual exchange rates in useduring the comparative prior year period and is provided to enhance thevisibility of the underlying business trends by excluding the impact oftranslation arising from foreign currency exchange rate fluctuations, which isconsidered a non-GAAP financial measure. Management uses this non-GAAPfinancial measure when evaluating the Company's performance, including whenmaking financial and operating decisions. Additionally, management believesthis non-GAAP financial measure provides investors with additional financialinformation that should be considered when assessing the Company's underlyingbusiness performance and trends. References to this measure should not beconsidered in isolation or as a substitute for other financial measurescalculated and presented in accordance with U.S. GAAP and may not be comparableto similarly titled non-GAAP measures used by other companies.

^2 Global Brand Divisions revenues include NIKE Brand licensing and othermiscellaneous revenues that are not part of a geographic operating segment.

^3 Corporate revenues primarily consist of foreign currency hedge gains andlosses related to revenues generated by entities within the NIKE Brandgeographic operating segments and Converse, but managed through the Company'scentral foreign exchange risk management program.

NIKE, Inc.

SUPPLEMENTAL NIKE BRAND REVENUE DETAILS

(Unaudited)

% Change Excluding Currency Changes1

TWELVE MONTHS ENDED

%

(Dollars in millions)

5/31/2021

5/31/2020

Change

NIKE Brand Revenues by:

Sales to Wholesale Customers

$

25,898

$

23,156

12

%

10

%

Sales through NIKE Direct

16,370

12,382

32

%

30

%

Global Brand Divisions2

25

30

-17

%

-17

%

TOTAL NIKE BRAND REVENUES

$

42,293

$

35,568

19

%

17

%

NIKE Brand Revenues on a Wholesale Equivalent Basis:3

Sales to Wholesale Customers

$

25,898

$

23,156

12

%

10

%

Sales from our Wholesale Operations to NIKE Direct Operations

9,872

7,452

32

%

30

%

TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES

$

35,770

$

30,608

17

%

15

%

NIKE Brand Wholesale Equivalent Revenues by:3

Men's

$

18,883

$

16,694

13

%

11

%

Women's

8,555

6,999

22

%

20

%

NIKE Kids'

5,884

5,033

17

%

15

%

Others4

2,448

1,882

30

%

26

%

TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES

$

35,770

$

30,608

17

%

15

%

NIKE Brand Wholesale Equivalent Revenues by:3

Running

$

3,987

$

3,830

4

%

3

%

NIKE Basketball

1,692

1,508

12

%

10

%

Jordan Brand

4,711

3,609

31

%

28

%

Football (Soccer)

1,682

1,575

7

%

4

%

Training

2,907

2,688

8

%

7

%

Sportswear

15,053

12,285

23

%

20

%

Others5

5,738

5,113

12

%

11

%

TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES

$

35,770

$

30,608

17

%

15

%

1 The percent change has been calculated using actual exchange rates in use during the comparative prior year period and is provided to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure. Management uses this non-GAAP financial measure when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes this non-GAAP financial measure provides investors with additional financial information that should be considered when assessing the Company's underlying business performance and trends. References to this measure should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.

2 Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

3 References to NIKE Brand wholesale equivalent revenues, which are considered non-GAAP financial measures, are intended to provide context as to the total size of the Company's NIKE Brand market footprint if it had no NIKE Direct operations. NIKE Brand wholesale equivalent revenues consist of 1) sales to external wholesale customers and 2) internal sales from the Company's wholesale operations to its NIKE Direct operations which are charged at prices that are comparable to prices charged to external wholesale customers.

4 Others include all unisex products, equipment and other products not allocated to Men's, Women's and NIKE Kids', as well as certain adjustments that are not allocated to products designated by gender or age.

5 Others include all other categories and certain adjustments that are not allocated at the category level.

NIKE, Inc.

SUPPLEMENTAL NIKE BRAND REVENUE DETAILS

(Unaudited)

% Change Excluding TWELVE MONTHS ENDED % Currency Changes^1(Dollars in millions) 5/31/2021 5/31/2020 Change

NIKE Brand Revenues by:

Sales to Wholesale Customers $ 25,898 $ 23,156 12 % 10 %

Sales through NIKE Direct 16,370 12,382 32 % 30 %

Global Brand Divisions^2 25 30 -17 % -17 %

TOTAL NIKE BRAND REVENUES $ 42,293 $ 35,568 19 % 17 %



NIKE Brand Revenues on a Wholesale Equivalent Basis:^3

Sales to Wholesale Customers $ 25,898 $ 23,156 12 % 10 %

Sales from our Wholesale Operations 9,872 7,452 32 % 30 %to NIKE Direct Operations

TOTAL NIKE BRAND WHOLESALE $ 35,770 $ 30,608 17 % 15 %EQUIVALENT REVENUES



NIKE Brand Wholesale Equivalent Revenues by:^3

Men's $ 18,883 $ 16,694 13 % 11 %

Women's 8,555 6,999 22 % 20 %

NIKE Kids' 5,884 5,033 17 % 15 %

Others^4 2,448 1,882 30 % 26 %

TOTAL NIKE BRAND WHOLESALE $ 35,770 $ 30,608 17 % 15 %EQUIVALENT REVENUES



NIKE Brand Wholesale Equivalent Revenues by:^3

Running $ 3,987 $ 3,830 4 % 3 %

NIKE Basketball 1,692 1,508 12 % 10 %

Jordan Brand 4,711 3,609 31 % 28 %

Football (Soccer) 1,682 1,575 7 % 4 %

Training 2,907 2,688 8 % 7 %

Sportswear 15,053 12,285 23 % 20 %

Others^5 5,738 5,113 12 % 11 %

TOTAL NIKE BRAND WHOLESALE $ 35,770 $ 30,608 17 % 15 %EQUIVALENT REVENUES

^1 The percent change has been calculated using actual exchange rates in useduring the comparative prior year period and is provided to enhance thevisibility of the underlying business trends by excluding the impact oftranslation arising from foreign currency exchange rate fluctuations, which isconsidered a non-GAAP financial measure. Management uses this non-GAAPfinancial measure when evaluating the Company's performance, including whenmaking financial and operating decisions. Additionally, management believesthis non-GAAP financial measure provides investors with additional financialinformation that should be considered when assessing the Company's underlyingbusiness performance and trends. References to this measure should not beconsidered in isolation or as a substitute for other financial measurescalculated and presented in accordance with U.S. GAAP and may not be comparableto similarly titled non-GAAP measures used by other companies.

^2 Global Brand Divisions revenues include NIKE Brand licensing and othermiscellaneous revenues that are not part of a geographic operating segment.

^3 References to NIKE Brand wholesale equivalent revenues, which are considerednon-GAAP financial measures, are intended to provide context as to the totalsize of the Company's NIKE Brand market footprint if it had no NIKE Directoperations. NIKE Brand wholesale equivalent revenues consist of 1) sales toexternal wholesale customers and 2) internal sales from the Company's wholesaleoperations to its NIKE Direct operations which are charged at prices that arecomparable to prices charged to external wholesale customers.

^4 Others include all unisex products, equipment and other products notallocated to Men's, Women's and NIKE Kids', as well as certain adjustments thatare not allocated to products designated by gender or age.

^5 Others include all other categories and certain adjustments that are notallocated at the category level.

NIKE, Inc.

EARNINGS BEFORE INTEREST AND TAXES1

(Unaudited)

THREE MONTHS ENDED

%

TWELVE MONTHS ENDED

%

(Dollars in millions)

5/31/2021

5/31/2020

Change

5/31/2021

5/31/2020

Change

North America

$

1,794

$

(13

)

13,900

%

$

5,089

$

2,899

76

%

Europe, Middle East & Africa

550

(153

)

459

%

2,435

1,541

58

%

Greater China

691

571

21

%

3,243

2,490

30

%

Asia Pacific & Latin America

418

79

429

%

1,530

1,184

29

%

Global Brand Divisions2

(1,110

)

(844

)

-32

%

(3,656

)

(3,468

)

-5

%

TOTAL NIKE BRAND1

2,343

(360

)

751

%

8,641

4,646

86

%

Converse

138

(27

)

611

%

543

297

83

%

Corporate3

(564

)

(367

)

-54

%

(2,261

)

(1,967

)

-15

%

TOTAL NIKE, INC. EARNINGS (LOSS) BEFORE INTEREST AND TAXES1

1,917

(754

)

354

%

6,923

2,976

133

%

% of revenues

15.5

%

(11.9

)

%

15.5

%

8.0

%

Interest expense (income), net

63

50

-

262

89

-

TOTAL NIKE, INC. INCOME (LOSS) BEFORE INCOME TAXES

$

1,854

$

(804

)

331

%

$

6,661

$

2,887

131

%

1 The Company evaluates the performance of individual operating segments based on earnings before interest and taxes (commonly referred to as "EBIT"), which represents net income before interest expense (income), net and income tax expense. Total NIKE Brand EBIT and Total NIKE, Inc. EBIT are considered non-GAAP financial measures and are being provided as management believes this additional information should be considered when assessing the Company's underlying business performance and trends. References to EBIT should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies.

2 Global Brand Divisions primarily represent demand creation and operating overhead expense, including product creation and design expenses that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.

3 Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's corporate headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses. For the three and twelve months ended May 31, 2021, Corporate included non-recurring employee termination and related costs associated with the previously announced leadership and operating model changes.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210624005975/en/

CONTACT: Investor Contact: Andy Muir (971) 473-3143

CONTACT: Media Contact: KeJuan Wilkins (971) 473-2556