Normally, I prefer to wait for the actual quarterly filing to be available before doing this kind of analysis, but I trust you can all appreciate what a monumental waste of time it would be to really dig into Nike’s balance sheet. They’ve got $4.7 billion in cash and short term investments and $9.7 billion in shareholders’ equity. They got only $342 million in long term debt and no outstanding bank borrowings. So my analysis? It’s strong. It’s a monster. They can do anything they want. Let’s move on.
Reported revenue for the quarter ended August 31 was up 8% to $5.175 billion compared to the same quarter last year. Gross profit was up 10% to $2.434 billion with the gross profit margin rising from 46.2% to 47.0%. This increase was the result of “…growth and improved profitability from Direct to Consumer operations, fewer and more profitable close-out sales and improved in-line product margins. These factors more than offset margin pressures resulting from changes in foreign currency and higher air freight costs to meet strong demand for NIKE Brand products.”