The US sporting goods giant Nike Inc. presented surprisingly good figures for the third quarter of the 2021/22 financial year on Monday evening. Both sales and earnings exceeded market expectations despite some global economic uncertainties and ongoing problems in China. This was mainly due to strong growth in North America.
In the months December to February, the group posted sales of 10.9 billion US dollars (9.9 billion euros), which corresponded to an increase of five percent (currency adjusted +8 percent) compared to the same quarter last year. The core brand Nike contributed the majority of the proceeds, which increased by six percent (currency-adjusted +8 percent) to 10.3 billion US dollars. Converse sales declined 1% to $567 million, but increased 2% on a constant currency basis.
Surprisingly strong growth in North America and in e-commerce are boosting sales
The Nike brand was surprisingly strong, especially in its core market of North America, where sales increased by nine percent to USD 3.88 billion. Revenues in Latin America and Asia-Pacific increased 11 percent (+19 percent at constant currency) to $1.46 billion, and grew 7 percent in the EMEA region, which includes Europe, the Middle East and Africa (currency-adjusted +13 percent) to 2.78 billion US dollars. In Greater China, on the other hand, sales declined by five percent (adjusted for currency effects -8 percent) to 2.16 billion US dollars compared to the previous year.
Our own e-commerce developed above average. The Nike brand increased its online sales by 19 percent (currency-adjusted +22 percent). Double-digit growth in all other regions more than offset the decline in China, the company said.
The quarterly profit falls by four percent
However, higher operating costs and tax burdens ensured that the result was lower than in the same quarter of the previous year. Net profit shrank by four percent to just under 1.40 billion US dollars (1.27 billion euros). However, it was still well above the analysts’ average forecasts.
In the first nine months of the current fiscal year, Nike was able to increase its group sales by seven percent to 34.5 billion US dollars compared to the same period last year. Net income grew nine percent to just under $4.61 billion.