Companies

Nike posts third quarter results

Mar 29, 2022 United States

The US-based company reported revenue growth in the third quarter of the current fiscal year, driven by a good performance of Nike’s direct business

"Nike’s strong results this quarter show that our Consumer Direct Acceleration strategy is working, as we invest to achieve our growth opportunities. Fuelled by deep consumer connections, compelling product innovation and an expanding digital advantage, we have the right playbook to navigate volatility and create value through our relentless drive to serve the future of sport”, commented John Donahoe, President and CEO of Nike.

“Our third quarter results demonstrate NIKE’s ability to navigate through volatility, while continuing to serve consumers directly and digitally, at scale. Marketplace demand continues to significantly exceed available inventory supply, with a healthy pull market across our geographies”, added Matt Friend, Executive Vice President and Chief Financial Officer of Nike.

Third Quarter Results

In the third quarter of fiscal 2022, Nike’s revenue increased by 5%, on a comparable basis to the same period of last fiscal year, reaching 10.9 billion US dollars, driven by Nike’s direct growth of 17%; on a currency-neutral basis, revenue was up by 8%.

The company observed that e-commerce sales rose by 22% over this period, driven by double-digit growth in North America, APLA* and EMEA** regions, partially offset by declines in Greater China. It also added that the normalization of traffic in owned physical retail also contributed to the result, with sales in owned stores increasing by 14%.

In detail, Nike brand’s revenue totalled 10.3 billion US dollars, which reflects growth of 8%, as compared to the same quarter of the prior year, on a currency neutral basis, led by a 13% rise in the EMEA region. Converse’s revenue declined by 1% on a reported basis, and was up by 2% on a currency-neutral basis, amounting to 567 million US dollars, thanks to a strong performance in North America and Europe, partially offset by declines in Asia.

In the three months to the 28^th of February, gross margin widened by 100 basis points to 46.6%, as compared to similar period last financial year. Net income totalled 1.4 billion US dollars, down by 4%, on a comparable basis to the third quarter of fiscal 2021, and diluted earnings per share corresponded to 0.87 US dollars.

*APLA – Asia Pacific & Latin America
** EMEA – Europe, Middle East & Africa

Image Credits: thesource.com

United States Brands Companies ecommerce Footwear Nike Quarter Results Results Sneakers Sportswear