Nike (NKE) Q4 2021 earnings summary

Executive summary

• FY21 delivered record revenue of $44.5B, up 19% reported and 17% currency-neutral, despite pandemic-related store closures and supply-chain disruption.

• Consumer Direct Acceleration centered on digital growth, a Men's, Women's and Kids' consumer structure, and investment in end-to-end technology and efficiency.

• Owned digital revenue exceeded 20% of the business, three years ahead of plan; FY25 owned digital mix target is 40%.

Financial highlights

• Revenue was $44.538B versus $37.403B in FY20; net income rose to $5.727B from $2.539B, and diluted EPS was $3.56 versus $1.60.

• Gross margin expanded 140 bps to 44.8%; gross profit grew 23% to $19.962B, reflecting higher full-price margins and lower prior-year COVID-related costs.

• Selling and administrative expense declined 1% to $13.025B; demand creation fell 13%, while operating overhead rose 4% on technology investment and restructuring costs.

• Operating cash flow was $6.657B versus $2.485B; cash and short-term investments totaled $13.5B at May 31, 2021.

Outlook and guidance

• FY25 goals: high-single-digit to low-double-digit revenue growth, gross margin in the high 40s, EBIT margin in the high teens, and diluted EPS growth in the mid-to-high teens.

• FY25 ROIC goal exceeds the low-30% range; annual capital expenditures are expected at roughly 3% of revenue.

• FY22 outlook remained confident, with plans to sustain momentum and extend market leadership; ongoing COVID uncertainty could pressure revenue, profitability, inventory, supply chains and tax rates.