// Nike fourth quarter revenues fall 1% to £9.9 billion
// Looking ahead, the business forecasts fiscal 2023 revenues to grow by “low single digits” when compared to 2022 levels
Nike has posted better-than-expected sales and profits for its fiscal fourth quarter and full year ending 31 May 2022, reporting just a 1% fall in fourth quarter revenues to £9.9 billion.
Despite the news, shares at the sporting giant fell around 3% in aftermarket trading due to its downbeat full-year forecast and the business cautioning surging transport costs, as well as a strong US dollar.
Nike Direct revenues for the fourth quarter reached £3.9 billion, up 7% compared to prior year and up 11% on a currency-neutral basis.
Wholesale reported revenues for the fourth quarter were £5.5 billion, down 7% compared to prior year and down 3% on a currency-neutral basis.
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Revenues for Converse were £1.8 billion, up 6% on a reported basis and up 7% on a currency-neutral basis, led by double-digit growth in its direct to consumer business, partially offset by wholesale revenue declines.
Looking ahead, the business forecasts fiscal 2023 revenues to grow by “low single digits” when compared to 2022 levels.
Chief Financial Officer Matthew Friend said Nike has factored elevated ocean freight costs, increased product costs, supply chain investments and higher levels of markdowns into its forecast.
On a call with analysts, he said the business is “optimistic” as it enters the new fiscal year.
“When we look at our brand strength and momentum, our product pipeline against some of the biggest growth opportunities that we have, we think we’re well positioned for growth in fiscal year ’23,” Friend told investors.
“Having said that, we did take a cautious approach to Greater China, and we’re doing that because as we look at what disrupted our performance in the fourth quarter and focusing on what we can control, we felt strongly that prioritizing a healthy pull marketplace is the right action for us to take given the ongoing risk that we see in that marketplace.”
Nike Inc. president and CEO John Donahoe said: “Nike’s results this fiscal year are a testament to the unmatched strength of our brands and our deep connection with consumers.
“Our competitive advantages, including our pipeline of innovative product and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport.”