Beaverton, Oregon — Revenue for Nike rose 6% to $34.4 billion or 8% on a currency neutral basis in its 2017 financial year.
This was driven by a 30% increase in digital commerce but margin declined by 1.6% to 44.6% as higher average selling prices were offset by the negative impact of foreign currency exchange rates and higher production costs.
Selling and administrative expenses increased 1% to $10.6 bn while the marketing budget was $3.3 billion up 10% due to marketing costs and investments around the Olympics and European football Championships in the first half of the year.
The company said that inventory is valued at $5.1 bn up 4% from 31 May 2016 because of an increase in average product cost per unit and growth in its direct to customer business.
Sales of footwear increased from $19.9 bn in 2016 to $21 bn in 2017 up 8% at constant currencies. The company's footwear sales are greatest in North America which accounted for $9.7 bn of sales in 2017 followed by: Western Europe, $4bn; China, $2.9 bn; and, emerging markets, $2.8 bn. Eastern Europe accounted for $927m of sales and Japan $666 m.