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Nike Q1 Earnings – Supply Chain Issues & Brands Digital Success Highlighted

By John F. Heerdink, Jr.

NIKE, Inc. (NKE) recently released Q1 earnings which were ‘curbed’ by supply-chain issues, as manufacturing delays due to factory shutdowns in facilities in Asia continued. The sportswear giant reported revenue of $ 12.2 billion vs. $12.47 billion expected. Adjusted earnings of $1.16 cents were reported versus $1.12 cents expected. Nike Direct sales were $4.7 billion, an increase of 25% on a currency-neutral basis. Digital sales rose 29%, or 25% on a currency-neutral basis, implying the brand’s digital success with its brand strength, product innovation, and meaningful relationships with consumers. The Nike SNKRS app, a major part of Nike’s digital dominance, grew more than 130% in Q1. 

“We now expect fiscal ’22 revenue to grow mid-single digits versus the prior year versus our prior guidance of low double-digit growth, due solely to the supply chain impacts that I just described. Specifically for Q2, we expect revenue growth to be flat to down low single digits versus the prior year as factory closures have impacted production and delivery times for the holiday and spring seasons,” stated Nike CFO Matt Friend.

“As has been the case since the start of the pandemic, I’m proud of the way our entire NIKE Inc. team has delivered through macro volatility. Over the past 18 months, we’ve demonstrated our ability to manage through turbulence to emerge even stronger and better positioned. And that’s what we’ll continue to do as we navigate through these current supply chain issues. We’ll focus on what we can control while leveraging the many levers at our disposal,” stated John Donahoe, president, and CEO of Nike said during a conference call with analysts.

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 still confident despite revising short-term outlook due to supply chain issues in Yahoo Finance)


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