Nike sales increase by 14 percent in Q3
For the third quarter, revenues for Nike, Inc. increased 14 percent to 12.4 billion dollars compared to the prior year and were up 19 percent on a currency-neutral basis.
Revenues for the Nike brand were 11.8 billion dollars, up 14 percent on a reported basis and up 19 percent on a currency-neutral basis, with double-digit growth in North America, EMEA and APLA.
Revenue for the company’s Nike brand in Greater China grew 1 percent on a currency-neutral basis despite a challenging December following the shift in the country’s Covid-19 policies, while on a reported basis, revenues for Greater China declined 8 percent.
Revenues for Converse were 612 million dollars, up 8 percent on a reported basis and up 12 percent on a currency-neutral basis, led by double-digit growth across all channels in North America, partially offset by declines in Asia.
Net profit for the quarter fell to 1.24 billion dollars from 1.4 billion dollars a year earlier.
“Nike’s strong results in the third quarter offer continued proof of the success of our Consumer Direct Acceleration strategy,” president and CEO John Donahoe told investors.
He continued: “Fueled 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.”
Gross margin decreased 330 basis points to 43.3 percent, while net income was 1.2 billion dollars, down 11 percent compared to prior year, and diluted earnings per share were 79 cents, decreasing 9 percent.
Nike returned approximately 2 billion dollars to shareholders, including dividends of 528 million dollars, up 9 percent from the prior year.