• Loading stock data...
Sunday, November 24, 2024

Nike Gets Needed Boost from Earnings Beat

  • Nike has had a rough 2022, but it delivered good news with its fiscal third quarter earnings.
  • The Swoosh posted $10.9B in revenue.
Nike
Nike/Design: Alex Brooks

Nike saw modest sales growth in its fiscal third quarter as it continues its push toward direct-to-consumer sales.

The Swoosh notched $10.9 billion in revenue, up 5% year-over-year (8% on a currency-neutral basis) in the quarter ending Feb. 28.

  • NIKE Direct, its increasingly important direct sales platform, accounted for $4.6 billion of the company’s sales, up 15% from the same period last year. 
  • The Nike Brand accounted for the vast majority of the company’s revenue — $10.3 billion — while Converse brought in $567 million.
  • Nike Brand grew 13% year-over-year in the EMEA region.

The company beat estimates of $10.6 billion in revenue, and its stock rose around 6% in after-market trading.

Prior to the favorable earnings, Nike’s stock had dropped 20.9% on the year, as supply chain troubles related to Russia’s assault on Ukraine and difficulties in China have worried investors.

Nike cut off online sales in Russia following the country’s invasion of Ukraine, saying it “cannot guarantee delivery of goods to customers” there.

Sales slipped 5% year-over-year in the Greater China region to $2.2 billion.

DTC Shift

“Nike’s strong results this quarter show that our Consumer Direct Acceleration strategy is working,” said John Donahoe, Nike’s president and CEO. 

The company has curtailed relationships with third-party retailers. Foot Locker said it would lose some of its Nike merchandise in the next few years.

Nike is evaluating $1 billion in media spending in a review expected to last into the spring.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Can an Elite Women’s Soccer School Survive the New College Sports Moneyball?

Santa Clara faces an uphill battle in the new college sports landscape.
Nov 16, 2024; Washington, District of Columbia, USA; Washington Spirit forward Trinity Rodman (2) celebrates after defeating NJ/NY Gotham FC in a 2024 NWSL Playoffs semifinal match at Audi Field. Mandatory Credit:

The Washington Spirit’s Business Makeover Carried Them to the Finals

The team’s return to the NWSL championship looks a lot different from 2021.
Nov 18, 2023; Las Vegas, Nevada, USA; Williams Racing driver Logan Sargeant of the United States (2) during the Las Vegas Grand Prix at Las Vegas Strip Circuit.

F1 Grand Prix Upended Vegas Last Year. Stakes Are High for Its..

Stakes are high as F1 gears up for a successful second act.
Classic Football Shirts New York Pop-Up

Vintage Soccer Jerseys Have Found a Sweet Spot in the Lucrative U.S...

The money-making shirts are at the prime intersection of memorabilia and fashion.
podcast thumbnail mobile
Front Office Sports Today

How Conference Expansion Has Changed College Football

0:00

Featured Today

Nov 13, 2024; New York, New York, USA; New York Knicks guard Josh Hart (3) reacts after fouling Chicago Bulls guard Coby White (not pictured) during the second half at Madison Square Garden.
opinion

NBA Ratings Rorschach Test: Buy the Dip

Was it the election? Too many threes? Lack of storylines?
November 15, 2024

Executive Decision: When Richard Nixon Named a College Football Champion

In 1969, the 37th president unilaterally named the winner of the season.
November 15, 2024

How Women’s Sports Could Change in the Next Trump Era

Under the president-elect, Title IX could change drastically.
Former President Donald Trump waves to the crowd as he exits the putting green with his aide Walt Nauta, left, during the final round of the LIV Golf Bedminster golf tournament at Trump National Bedminster on Sunday, Aug. 13, 2023.
opinion
November 9, 2024

Trump Win Puts Sports Back in the White House

With Trump back in the White House, sports get more political again.

Endeavor, TKO Consolidate Sports Assets, Hoping They’re Better Together

The move brings On Location, Professional Bull Riders, and IMG under TKO.
Sep 11, 2024; Los Angeles, California, USA; The Nike shoes worn by Seattle Storm center Mercedes Russell in the first half against the LA Sparks at Crypto.com Arena.
opinion
September 28, 2024

New Nike CEO Must Do It

The biggest task the new CEO faces is intangible: Refresh the brand.
October 1, 2024

Nike CFO Says ‘Adversity Creates Sharper Focus’

Amid a downbeat but expected set of earnings, Nike says it sees signs of optimism.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
A Nike swoosh on a building in Eugene, Oregon.
September 23, 2024

Wall Street: Things Will Get Worse for Nike Before They Get Better

Some analysts are skeptical of how much the new CEO will change.
Crypto.com soccer advertising
September 15, 2024

The Champions League Is Back. So Is Crypto Sponsorship

Crypto investment is making its debut in the biggest European soccer competition.
Sep 9, 2024; Santa Clara, California, USA; San Francisco 49ers wide receiver Deebo Samuel (1) warms up before a game against the New York Jets at Levi's Stadium.
September 12, 2024

The NFL’s Private Equity Era Won’t Be the Bloodbath You Think—for Now

“It’s a different kind of investment thesis entirely.”
ESPN commentator Jay Williams speaking at a conference.
September 11, 2024

Jay Williams Supports PE in College Sports: ‘I Would Like to Own 49% of Duke Basketball’

Williams wants in when PE gets into college sports.