Excluding changes in currency exchange rates footwear revenue in Western Europe

Excluding changes in currency exchange rates footwear

This preview shows page 26 - 28 out of 152 pages.

Excluding changes in currency exchange rates, footwear revenue in Western Europe increased 5% for fiscal 2012, primarily driven by a low-single-digit percentage growth in both unit sales and average selling price per pair, primarily reflective of product price increases, partially offset by higher discounts on in-line and close-out sales. The overall increase in footwear sales was driven by growth in Running, Basketball and Football (Soccer), which more than offset a decline in Action Sports. Excluding changes in currency exchange rates, apparel revenue in Western Europe increased 2% for fiscal 2012. The year-over-year change was primarily driven by a mid- single-digit percentage increase in average selling price per unit, reflective of higher product prices. Partially offsetting the increase in average selling price per unit was a mid- single-digit percentage decline in unit sales. The overall increase in apparel sales was driven by growth in Football (Soccer) and Running, which more than offset a decline in Sportswear. On a reported basis, revenues for Western Europe increased 7% for fiscal 2012. However, EBIT fell 18%, primarily driven by a 350 basis point decline in gross margin and higher selling and administrative expense as a percentage of revenues. The decline in gross margin was driven by higher product input costs and the negative impact from changes in standard currency rates, which more than offset the favorable impact of product price increases and the growth of our Direct to Consumer business. The increase in selling and administrative expense as a percentage of revenues was mainly driven by an increased level of demand creation spending around the European Football Championships and London Summer Olympics. Also reflected in Western Europe’s fiscal 2012 results was a $24 million charge relating to the restructuring of its operations. (Dollars in millions) Fiscal 2012 Fiscal 2011 FY12 vs. FY11 % Change FY12 vs. FY11 % Change Excluding Currency Changes Fiscal 2010 FY11 vs. FY10 % Change FY11 vs. FY10 % Change Excluding Currency Changes Revenues by: Footwear $ 2,526 $ 2,345 8% 5% $ 2,284 3% 8% Apparel 1,377 1,303 6 % 2 % 1,311 -1 % 4 % Equipment 241 220 10% 5% 244 -10 % -5% TOTAL REVENUES $ 4,144 $ 3,868 7 % 4 % $ 3,839 1 % 6 % Revenues by: Sales to Wholesale Customers $ 3,556 $ 3,385 5 % 2 % $ 3,380 0 % 5 % Sales Direct to Consumer 588 483 22% 18% 459 5% 10% TOTAL REVENUES $ 4,144 $ 3,868 7 % 4 % $ 3,839 1 % 6 % EARNINGS BEFORE INTEREST AND TAXES $ 597 $ 730 -18% $ 807 -10 % 22
Image of page 26
Table of Contents Fiscal 2011 Compared to Fiscal 2010 On a currency neutral basis, revenues for Western Europe increased 6% for fiscal 2011, attributable to growth in most territories. Revenues for the U.K. & Ireland, the largest market in Western Europe, grew 5% for fiscal 2011. Western Europe’s Direct to Consumer revenues grew 10%, which contributed approximately 1 percentage point to Western Europe’s revenue increase. The growth in the Direct to Consumer business was fueled by 6% growth in comparable store sales.
Image of page 27
Image of page 28

You've reached the end of your free preview.

Want to read all 152 pages?

  • Fall '18
  • The Land, Brand, vice president, Nike, Inc., Nike Golf

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes