// Nike reports revenue of $13.32 billion, up 17% from $11.36 billion a year earlier.
// It expects revenue growth for the current year ending May 2023 to improve slightly to low teens on a currency-neutral basis from its previous forecast of a low double-digit increase
Nike has posted its best quarterly revenue growth in over a decade barring one quarter, beating expectations, as North American shoppers rushed to stock up on sneakers and sportswear before Christmas.
Revenue at the business jumped 17% to $13.32 billion, beating an average estimate of $12.57 billion and up from $11.36 billion a year earlier.
That was its best showing in 42 quarters, barring a 95% surge in the fourth quarter of 2021 when retail stores had just started to reopen after a year of pandemic lockdowns.
Steeper discounts and increased promotions to reduce excess inventory throughout the quarter helped the sportswear giant boost sales and attract recession-wary customers.
Nike CEO John Donahoe said he believes the company is already past its inventory peak.
He said “Nike’s results this quarter are a testament to our deep connection with consumers,”, adding, “Our growth was broad-based and was driven by our expanding digital leadership and brand strength.”
Sales in North America, its largest market, surged 30% while Nike’s sales in China, its third biggest market by revenue, dropped by 3% compared to last year, continuing a trend the retailer has been contending with as the country deals with lingering Covid lockdowns and a slowdown in retail spending.
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On a post-earnings call, Nike finance chief Matthew Friend said the company had made good progress in clearing inventory during the quarter, and that products for the spring season were arriving earlier with faster transit times.
He added that the company saw record demand during the Black Friday and Cyber Monday period in North America, while in Europe, Middle East, and Africa regions, Nike saw its biggest Cyber Week with demand having increased by 75% from last year.
As a result, the company said it expects revenue growth for the current year ending May 2023 to improve slightly to low teens on a currency-neutral basis from its previous forecast of a low double-digit increase.
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