The US sporting goods supplier Nike Inc. was able to hold its own surprisingly well in the second quarter of the 2022/23 financial year despite the adverse conditions. The latest results, which the company published on Tuesday evening, significantly exceeded market expectations.
In the period from September to November, group sales amounted to 13.3 billion US dollars (12.5 billion euros), which meant an increase of 17 percent compared to the same quarter last year. Adjusted for exchange rate changes, sales even grew by 27 percent. On average, the analysts had previously forecast just under 12.6 billion US dollars.
The majority of the proceeds came from the main brand Nike, which achieved an increase of 18 percent (+28 percent in constant currency) to 12.7 billion US dollars. The much smaller label Converse increased its sales by five percent (currency-adjusted +12 percent) to 586 million US dollars.
Discount campaigns and unfavorable changes in exchange rates weighed on the result
The Nike brand was particularly successful in North America, where its sales grew by 30 percent (currency-adjusted +31 percent) to USD 5.83 billion. In the EMEA region, which includes Europe, the Middle East and Africa, sales increased by eleven percent (+33 percent at constant currency) to USD 3.49 billion. In China, revenue fell 3 percent to $1.79 billion, but increased 6 percent on a constant currency basis. Revenue in the rest of Asia-Pacific and Latin America grew 19 percent (+34 percent in constant currency) to $1.60 billion.
Earnings were impacted by higher discounts to reduce inventories in North America, as well as unfavorable exchange rate movements and a higher tax rate. Therefore, reported net income was $1.33 billion, down 0.4 percent year-on-year. However, the analysts had expected a much more significant decline.
In the first half of the current fiscal year, the group was able to increase its sales by ten percent to 26.0 billion US dollars compared to the same period last year. Net income shrank 13 percent to $2.80 billion.