World Footwear

Companies

Nike posts revenue growth

Dec 22, 2022 United States
Nike posts revenue growth
In the second quarter of fiscal 2023, the sportswear giant posted a revenue increase of 17%, year-over-year, driven by discounts and increased promotions to reduce the inventory excess
"Nike's results this quarter are a testament to our deep connection with consumers. Our growth was broad-based and was driven by our expanding digital leadership and brand strength. These results give us confidence in delivering the year as our competitive advantages continue to fuel our momentum", commented John Donahoe, President and CEO of Nike.


Second Quarter Results

In the second quarter of fiscal 2023, the sportswear giant posted revenue growth of 17% (or 27% on a currency-neutral basis), as compared to the same period of the prior year, reaching 13.3 billion US dollars.

Nike brand's revenue totalled 12.7 billion US dollars in this period, up by 18% on a reported basis and by 28% on a currency-neutral basis, on a comparable basis to a similar period of fiscal 2022, "with strong growth across all geographies and channels". In turn, Converse's brand revenue increased by 5% on a reported basis and by 12% on a currency-neutral basis in the same timeframe, year-over-year, amounting to 586 million US dollars, driven by "double-digit growth in North America, partially offset by declines in Asia". 

By channel, in the second quarter of the current fiscal year, Nike's direct sales grew by 16% on a reported basis and by 25% on a currency-neutral basis, reaching 5.4 billion euros, while wholesale revenue rose by 19% on a reported basis and by 30% on a currency-neutral basis, as compared to the same quarter of the prior year. The company also informed that, in this period, Nike brand digital sales were up by 25% on a reported basis and by 34% on a currency-neutral basis over the same period of the previous year.

In the three months to the 30th of November, the US-based company's gross margin declined by 300 basis points to 42.9%, on a comparable basis to the same period of fiscal 2022.

Nike's net income totalled 1.3 billion US dollars in this second quarter, flat as compared to the last fiscal year, and diluted earnings per share stood at 0.85 US dollars (up by 2%).


Image Credits: nike.com


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