The footwear manufacturer said yesterday that net income reached $560 million over the quarter ending February 29″
“Revenue increased 15% to $5.8 billion, and was up 16% on a constant currency basis .
“The company attributed the profit gains to continued strong demand for its products combined with SG&A expense leverage and a lower average share count, which it said more than offset the impact of a lower gross margin and higher effective tax rate .
“However, gross margin was down 200 basis points to 43.8%, which was due to higher product costs, which the company said more than offset the positive effects of price increases, direct sales, and cost reduction initiatives .
““The environment remains volatile, but I’m optimistic about the future. We’re starting a great season of major sports events and we have a pipeline full of innovation to fuel growth over the long term,” said president and CEO Mark Parker .
“The company said that inventories increased by 32% on the previous year, with 20 percentage points of that due to higher product costs and changes in product mix, and the remaining 12% to higher wholesale unit inventories to support strong demand and as because of more timely deliveries from its suppliers .
“It added that, at the end of the quarter, orders scheduled for March through July totalled $9.4 billion, 15% higher than orders scheduled for the same period of the previous year .