• Loading stock data...
Friday, June 21, 2024

Nike’s Earnings Robust Amid Supply Chain Issues

  • Nike posted $12.2 billion in revenues for the fiscal quarter ending August 31, a 12% year-over-year increase.
  • The company's digital business grew by 25%.
nike_building
Nike/Design: Alex Brooks

Nike kept its momentum going in its fiscal first quarter of 2022, posting $12.2 billion in revenue, a 12% increase year-over-year.

The revenue figure was nearly identical to the $12.3 billion the sneaker and apparel giant posted last quarter, which represented a 96% increase over the same period last year. 

  • Net income grew 23% year-over-year to $1.87 billion for the three months ending Aug. 31.
  • Nike’s digital business grew by 25% overall and 43% in North America. Its physical retail presence increased by 24%. Nike has cut down on partnerships with third-party retailers, including ending a deal with Amazon in 2019.
  • However, the Swoosh has struggled to bring customers back to its brick-and-mortar locations, with foot traffic down in June (14.5%), July (5.1%), and August (14.3%) compared to 2019, according to Placer.ai. 

The pandemic is hampering the company’s supply chain: finance firm BTIG estimated that Nike could lose 160 million pairs of shoes due to manufacturing facility closures in Vietnam. Nike produces roughly 50% of its footwear and 30% of its apparel in Vietnam.

Sales in its Asia Pacific and Latin America region grew 33% year-over-year to $1.47 billion. Greater China sales grew the least of all its regions, notching 11% year-over-year growth to reach $1.98 billion.

Shares were down around 2% in after-hours trading, as revenues fell just short of analyst expectations.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Jan 3, 2022; Pittsburgh, Pennsylvania, USA; General view of the NFL shield logo signage before the Pittsburgh Steelers host the Cleveland Browns at Heinz Field.

Odds Stacked Against NFL in Multibillion-Dollar Sunday Ticket Trial

Why the class action trial does not look promising for the league.
Jan 7, 2024; San Francisco, California, USA; Toronto Raptors forward Jontay Porter (11) takes a three-point shot against the Golden State Warriors during the second half at Chase Center.

‘Bound to Happen’: The Age of the Sports Betting Scandal Has Arrived

A banishment, betting scheme, and guilty plea all in one scandal-filled span.

‘Experimental in Nature’: The Rapid, Confounding Rise of Streaming Bundles

Here’s why confusion continues to outweigh solutions in the streaming package boom.

The Nostalgia Market: Michael Jordan’s Memorabilia Remains Coveted, With Caveats

Due to scarcity, and sometimes, items’ undisclosed whereabouts, this world has limitations.
podcast thumbnail mobile
Front Office Sports Today

How Women’s Sports Media is Charting Its Own Path

0:00

Featured Today

Pac-12

The Pac-12 Wants Everybody to Know That It Isn’t Dead Yet

With a broadcast studio and two schools, the league plans to rebuild.
Jan 11, 2024; Paris, FRANCE; NBA commissioner Adam Silver speaks before a NBA Game between the Brooklyn Nets and the Cleveland Cavaliers at AccorHotels Arena.
May 26, 2024

Adam Silver Is the Real Winner in the Battle for the NBA’s Rights Future

For the past decade, the commissioner has been playing chess, not checkers.
NCAA headquarters in Indianapolis. Ncaahall 311477 Jpg
May 25, 2024

From Revenue-Sharing to Private Equity: Breaking Down the NCAA’s Historic Week

Commercialization of college sports has never been more evident than this week.
exclusive
May 20, 2024

‘This Is Semi-Pro’: Inside One Arena Football League Team’s Collapse

The collapse of the Georgia Force, as told by the players who lived it.

Silver Lake to Take Endeavor Private, Ending Tough Stock Market Run

Private equity giant Silver Lake is set to acquire the remaining shares it didn’t already own.
Exterior of Nike Company Store
February 16, 2024

Nike to Lay Off 2% of Its Workforce in Cost-Savings Effort

The sportswear giant hinted at staff cuts in a December earnings call.
DraftKings
February 16, 2024

DraftKings Trends Toward the Black, Buys Lottery App

The sports gambling giant continues to narrow its losses.
Sponsored

How HOKA is Reimagining the NIL Relationship

HOKA, the renowned athletic footwear and apparel brand, is betting on a new reality with NIL.
February 7, 2024

ESPN DTC to Debut by Fall 2025, but Streaming Alliance Hastens Market Entry

Date set for stand-alone version of network, but new joint venture will beat that by a year.
January 22, 2024

They Make Sports Balls—and They Could Be Worth Almost $9 Billion

Amer Sports looks to raise as much as $1.8 billion in the public markets.
A view of a FanDuel sportsbook location.
January 18, 2024

FanDuel Strengthens U.S. Dominance Ahead of NYSE Debut

Flutter posts strong financial results as NYSE shares are set to debut Jan. 29.
The swoosh logo at Nike Eugene.
September 28, 2023

Nike Misses Revenue Wall Street’s Projections, But Company’s Stock Soar

The company offset the shortfall by exceeding expectations in earnings per share.