Nike posted its first quarter earnings of 93 cents, beating analysts’ expectations of 92 cents (per Refinitiv poll).
Revenue climbed +4% from the year-ago quarter to $12.69 billion, vs. $12.27 billion expected by analysts (according to Refinitiv poll). IN recent times, the sneaker giant Nike has been focusing on selling its merchandise directly to customers and therefore scaling back on what is sold via wholesale partners like Foot Locker. The company’s direct sales rose by +8% to $5.1 billion, and sales for its digital-brand increased +16%.
Total sales in North America (Nike’s largest market) grew +13% year-over-year, while those in Greater China fell -16%.
Nike’s inventory was up +44% to $9.7 billion from the same period last year, amidst supply chain issues and partially offset by solid consumer demand.
Looking ahead, Nike expects revenue in the second fiscal quarter to grow low double digits on strong consumer demand, even as supply chain issues and foreign exchange currency movements pose challenges.