The Swoosh is closing out the calendar year with good revenue news after posting profits beyond what prognosticators anticipated.
Nike just experienced one of its best quarterly revenue growths in more than a decade. The sportswear brand dropped its financial results for the second fiscal quarter of 2023 ending on Nov. 30, 2022 this week. In beating Wall Street’s profit forecasts for the period by a comfortable margin, the results depict a company that’s entering a new calendar year with more than a little wind at its back.
The Swoosh reported:
- A net income for the period of $1.33 billion, or 85 cents per share, compared with $1.34 billion, or 83 cents per share the previous year
- Revenues of $13.32 billion, up 17% from a $11.36 billion figure from a year earlier
- A 16% increase in Nike Direct sales for the quarter at $5.4 billion, with digital sales up 25%
Nike execs additionally noted that buyers who signed up as members of its loyalty program during the Black Friday and Cyber Monday periods likely contributed to the successful figures, as they took advantage of the added discounts on top of already reduced products.
“Nike’s results this quarter are a testament to our deep connection with consumers,” John Donahoe, President and CEO, NIKE, Inc. said. “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.”
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Other topline findings include a $586 million increase in revenues for Nike, Inc.’s Converse brand, up 5% on a reported basis and a 12% boost on a currency-neutral basis led by double-digit growth in North America, partially offset by declines in Asia. On that note, Nike’s sales in China — its third biggest global market by revenue — declined by 3% in comparison to 2022. Keep in mind that China continues to experience major struggles with COVID-19, a plausible explanation for its e-commerce downturn and a slowdown in retail spending.
The footwear and apparel giant’s quest to continue dominating the worldwide sportswear market both online and in stores will only accelerate with these recent findings. As Boardroom previously noted, Jordan Brand opened its first flagship store in Italy. The brick-and-mortar location features floor space stretching over 300 meters across, and will house everything from coveted retro sneakers to in-demand collaborations tied to Travis Scott, J Balvin, and other influential industry figures.
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