Nike posted a solid increase in third-quarter revenue driven by robust demand in North America.
But the company’s net income fell amid the financial impact from inflation, supply chain shortages, and Russia’s invasion of Ukraine.
The Swoosh announced encouraging results for its fiscal third quarter ending Feb. 28.
- Revenues rose 14% from the year prior to $12.4 billion. North American revenue rose double-digits, but revenue from China dropped 8% due to a change in the nation’s COVID policies.
- Net income slid 11% to $1.2 billion. Diluted earnings per share were $0.79, off 9%.
- The Nike brand’s digital sales were another strong point, rising 20%.
The Swoosh’s third-quarter results topped analyst expectations, noted CNBC, and could’ve been even better if not for the global supply chain crises.
Nike told financial analysts it would’ve had a stronger holiday selling season had there been enough merchandise on hand. To tackle the problem, it’s moving up buying timelines.
But with so much global uncertainty, Nike held off on giving an outlook for the year.
“We are focused on what we can control,” said Matthew Friend, Nike’s chief financial officer, on a post-earnings conference call. “There are several new dynamics creating higher-levels of volatility.”