Home
Discover
Trends
Leaders
Trending Assets
Top investors this month
Trending Assets
Top investors this month
Alberto Wallis's avatar
Alberto Wallis
$13.3MFollowers
@awallis03/22/2022
Nike $NKE Q3 Earnings Highlights!

  • Revenue $10.9Bn (+5% YoY)
  • Direct Sales $4.6Bn (+15% YoY)
  • Brand Digital Sales +19% YoY
  • Gross margin 46.6% (+100bps YoY)
  • Diluted EPS $0.87


Strong demand:
  • "Now consumer demand for all 3 of our brands, NIKE, Jordan and Converse, remains incredibly strong. Our growth in the third quarter would have been even higher if we had greater quantities of available inventory to meet marketplace demand. Across the marketplace, holiday retail sales finished strong, and spring retail sales are off to a great start, fueled by strong demand for performance men's running, Air Jordan 1, classics footwear and our apparel fleece franchises. We are also sustaining a higher full-price mix with year-over-year improvement in markdown activity."
Digital sales:
  • "In Q3, digital revenue was up 22% on a currency-neutral basis as we continue to drive greater competitive separation, particularly through our app ecosystem. The NIKE mobile app was up more than 50% in the quarter and overtook Nike .com on mobile for our highest share of digital demand."
Resilient Supply Chain:
  • "All factories in Vietnam are operational, with total footwear and apparel production in line with pre-closure volumes and our forward-looking demand plans. Nearly all of our supplier base is operational without restrictions, and we are working closely with our partners around the world to navigate through the most recent risks related to COVID."
Gross Margins:
  • "Gross margin increased 100 basis points versus the prior year, driven primarily by higher NIKE Direct margins due to lower markdowns, favorable foreign currency exchange rates and a higher full price mix, partially offset by increased freight and logistics costs."
  • "And just on your margin question, Matt, the underlying drivers of the CDA are what's fueling our gross margin expansion. Obviously, this year, we're incredibly proud by 150 basis points or at least 150 basis points of gross margin expansion, where we've absorbed more than 100 basis points of unplanned costs associated with supply chain, logistics and wages to move product."

Alberto Wallis's avatar
Alberto Wallis
$13.3MFollowers
@awallis
Related
Already have an account?