“Nike’s strong results this quarter are continued proof of our deep consumer connections, unrelenting innovation pipeline and a digital advantage that fuels our brand momentum. We have the right playbook to navigate macroeconomic dynamics, as we create value through our relentless drive to fuel the future of sport”, declared John Donahoe, President and CEO of Nike.

Matt Friend, Executive Vice President and Chief Financial Officer of Nike added that the company is in growing mode “with a market opportunity as large as it's ever been. Our Q1 results illustrate how Nike’s Consumer Direct Acceleration strategy continues to fuel growth and transform our long-term financial model.”

First Quarter Results

During the first quarter ended on the 31^st of August, the company reported an increase in revenue of 16% to 12.2 billion US dollars, as compared to the prior year; up by 12% on a currency-neutral basis.

In the first quarter of fiscal 2022, revenue for the Nike brand grew by 12% to 11.6 billion US dollars, on a currency-neutral basis, as compared to similar period the prior year, driven by Nike Direct double-digit growth across North America, APLA and EMEA. Revenue for Converse reached 629 million US dollars, up by 7% on a currency-neutral basis, led by the performance in the Direct-to-consumer business in both North America and Europe.

Overall, Nike grew across all its marketplaces channels: sales in owned physical stores rose by 24%, exceeding pre-pandemic levels from the first quarter of fiscal 2020. The Nike brand digital business kept its growth trajectory, increasing by 25%, and wholesale grew by 5%.

Gross margin increased by 170 percentage points to 46.5% in these past three months, driven by margin expansion in Nike Direct business, a higher mix of full-price sales and favourable changes in foreign currency rates, partially offset by higher product costs primarily due to increased freight costs.

In the first quarter of the current fiscal year, net income totalled 1.9 billion US dollars, up by 23%.