Companies

Nike reports sales increase

Mar 27, 2023 United States

As it continues to clear out its excess inventory, the US-based sportswear giant reported that its revenue increased by 14% in the third quarter of fiscal 2023, year-over-year

“Nike's strong results in the third quarter offer continued proof of the success of our Consumer Direct Acceleration strategy. Fuelled by compelling product innovation, deep relationships with consumers and a digital advantage that fuels brand momentum, our proven playbook allows us to navigate volatility as we create value and drive long-term growth”, commented John Donahoe, President and CEO of Nike.

Third Quarter Results

In the quarter that ended on the 28^th of February, Nike's revenue increased by 14%, reaching 12.4 billion US dollars, on a comparable basis to the same period of the prior year; on a currency-neutral basis, the company's revenue grew by 19%.

By brand, in the third quarter of fiscal 2023, the Nike brand's revenue amounted to 11.8 billion US dollars, up by 14% on a reported basis and by 19% on a currency-neutral basis, while Converse's revenue totalled 612 million US dollars, up by 8% on a reported basis and by 12% on a currency-neutral basis, as compared to the same quarter of fiscal 2022.

The Oregon-based company also reported that its direct sales rose by 17% on a reported basis and by 22% on a currency-neutral basis, totalling 5.3 billion US dollars, and that its wholesale revenue increased by 12% on a reported basis and by 18% on a currency-neutral basis, as compared to a similar period of the last year.

Nike's third quarter gross margin declined by 330 basis points, year-over-year, to 43.3%, mainly “due to higher markdowns to liquidate inventory; continued unfavourable changes in net foreign currency exchange rates; higher product input costs and elevated freight and logistics costs, partially offset by strategic pricing actions”.

In the third quarter of the current fiscal year, the company's net income decreased by 11% to 1.2 billion euros, or 0.79 US dollars per diluted share, on a comparable basis to the same period of fiscal 2022.

Image Credits: deadstock.de

United States Companies Footwear Nike Quarter Results Results Sportswear