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Nike Crushes Q4 Earnings Expectations – Witnesses Growth In North America & Greater China

By John F. Heerdink, Jr.

As per reports, Nike Inc. (NKE) reported fiscal Q4 earnings and sales this week, beating analyst estimates. The sports giant also offered a better-than-expected sales outlook for the upcoming year, driven by optimistic growth around its women’s category, apparel business, and Jordan brand. Nike witnessed a boost in its wholesale business, some of Nike’s key wholesale partners include Foot Locker, Dick’s Sporting Goods, and JD Sports.

Earning & Quarter Highlights:

  • Earnings per share stood at 93 cents versus 51 cents expected.
  • Revenue of $12.34 billion was reported versus $11.01 billion expected.
  • Net income for the period ending May 31 increased to $1.5 billion, or 93 cents per share, in comparison to a loss of $790 million, or 51 cents per share, a year earlier.
  • Total revenue increased to $12.34 billion from $6.31 billion a year earlier, exceeding estimates for $11.01 billion. Sales were driven by the company selling more goods at full price and relying less on markdowns.
  • Nike’s biggest market, North America sales doubled more to a record $5.38 billion as the company recovered from a year earlier when the Covid pandemic was hitting the retail industry the hardest. The region’s sales were up 29% on a two-year basis.
  • Greater China sales were up just 17% at $1.93 billion. 
  • Digital sales rose 41% compared with the prior year.
  • Nike is expecting revenue to grow a low double-digit percentage for fiscal 2022, surpassing $50 billion, ahead of analysts’ estimates of $48.5 billion.

The company informed that its membership model is helping to fuel its e-commerce business. Online purchases from Nike members, who receive first access to exclusive products and other perks, reached a record $3 billion during the fourth quarter. Nike said it now has more than 300 million members globally.


“Fueled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for Nike’s long-term growth,” stated Nike CEO John Donahoe.

The company anticipates supply chain delays and higher logistics costs to persist throughout much of fiscal 2022. Also, shortage of containers and a dearth of truck drivers, among other factors, have delayed merchandise from getting from ports to warehouses to shoppers’ homes.

NIKE, Inc. (NKE) is the world’s top designer, marketer, and distributor of athletic footwear, equipment, apparel, and accessories. The Beaverton, Oregon-based company offers products for a wide variety of sports and fitness activities. To learn more about NIKE, Inc. (NIKE) and to continue to track its progress please visit the Vista Partners NIKE Coverage Page.

 
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
 
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(Read Original Story: Nike earnings and sales beat estimates as retailer books record revenue in North America in CNBC)


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