Nike on the front foot with strong sales across international markets

Nike reported a 14% increase in revenue compared with the same time last year to $12.4bn (£10.1bn) in the third quarter ending February 28, 2023. Revenue rose 19% on a currency-neutral basis.

Wholesale revenues grew 12% on a reported basis and 18% on a currency-neutral basis.

The sportswear giant recorded a 17% surge in its Nike Direct sales to $5.3bn (£4.3bn) and a 22% rise on a currency-neutral basis.

Nike Brand Digital sales increased 20% on a reported basis and 24% on a currency-neutral basis.

Increased revenue and sales were aided by double-digit growth in North America, Europe, Middle East, Africa, Asia and Latin America.

Greater China inched up 1% on a currency-neutral basis, but revenues declined 8% on a reported basis.

Gross margin decreased 330 basis points to 43.3%, which Nike said was due to higher markdowns to liquidate inventory, continued changes in net foreign currency exchange rates and higher product input, freight and logistics costs.

Nike chief executive and president John Donahoe said: “Nike’s strong results in the third quarter offer continued proof of the success of our Consumer Direct Acceleration strategy.”

“Fueled by compelling product innovation, deep relationships with consumers and a digital advantage that fuels brand momentum, our proven playbook allows us to navigate volatility as we create value and drive long-term growth.”

Executive vice-president and chief financial officer Matthew Friend added: “Nike’s brand distinction and strong execution continue to create separation in the marketplace. We have made tremendous progress on inventory as we position Nike for sustainable and more profitable growth.”