Nike (NKE) Q2 2022 earnings

Pedestrians carry shopping bags from Nike and Allbirds in the SoHo neighborhood of New York, on Sunday, October 24, 2021.

Nina Westervelt | Bloomberg | beautiful pictures

Nike Shares rose more than 4% in extended trading Monday after the sneakers maker reported fiscal second-quarter revenue and earnings that beat analysts’ expectations, defying supply chain pressures. response is taking place.

CEO and President John Donahoe said the retailer was in a “much stronger competitive position” than it was before the pandemic.

While the Covid-related factory closures overseas affected some of its progress at the start of the year, Nike said inventory shipments rose in the most recent quarter, particularly in North America. .

Here’s how Nike did in the three-month period ending November 30th compared to what analysts had predicted, using Refinitiv estimates:

  • Earnings per share: 83 cents vs 63 cents expected
  • Revenue: $11.36 billion vs. $11.25 billion expected

Nike said net income rose to $1.34 billion, or 83 cents per share, from $1.25 billion, or 78 cents per share, a year earlier. That topped analyst expectations for earnings of 63 cents a share.

Revenue rose 1% to $11.36 billion from $11.24 billion, beating estimates of $11.25 billion.

Sales in North America, Nike’s largest market, grew 12%, representing the highest growth of all geographies.

Sales in mainland China fell 20%, while sales in the Europe, Middle East and Africa region increased 6%. Nike’s recovery in China has become a bigger focus for investors as the market remains key to the company’s future growth. Western brands have faced some backlash in China amid global tensions.

“Assessing the trajectory of that very important region will be a question we will have to focus on,” said Simeon Siegel, China analyst at BMO Capital Markets.

Nike says its digital sales grew 12% year-over-year, while sales through Nike Direct grew 9%. The company has increasingly pulled its merchandise out of wholesale channels, such as discount stores, and instead sells more workout equipment through its own website and stores.

And just earlier this month, Nike announces acquisition of virtual sports shoe company RTFKT for an undisclosed amount, bet on the metaverse. “It registered trademark says its intention is to produce and sell Nike-branded virtual shoes and clothing.

The company did not provide an update for its full-year outlook in its earnings release. Earlier this year, Nike slashed its revenue forecast for fiscal 2022 due to longer shipping times, labor shortages and prolonged production shutdowns in Vietnam, where Nike makes about half of its shoes.

According to Refinitiv data, analysts are looking to Nike to report annual earnings of $3.59 per share on revenue of $47.1 billion.

To date, Nike’s stock is up about 11%, bringing its market capitalization to $248.5 billion.

Find the full Nike earnings press release here.


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