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.
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.