Summary
NIKE, Inc. demonstrated resilience and achieved record revenues of $46.7 billion for the fiscal year ended May 31, 2022, marking a 5% increase over the prior year. This growth was primarily driven by strong performance in EMEA, North America, and APLA, despite a decline in Greater China attributed to COVID-19 resurgence and marketplace dynamics. The company's strategic shift towards NIKE Direct, which now accounts for 42% of total NIKE Brand revenues, continues to be a key growth driver, with NIKE Brand Digital sales increasing by 18%. Despite supply chain disruptions and elevated logistics costs that impacted gross margins, NIKE managed to expand its gross margin by 120 basis points year-over-year, signaling effective cost management and pricing strategies. The company faced challenges including production losses due to government-mandated shutdowns in Vietnam and Indonesia, contributing to a 23% increase in inventories to $8.4 billion. However, NIKE is actively managing these impacts through its operational playbook, including inventory balancing and pricing actions. The company also announced a new $18 billion share repurchase program, underscoring its commitment to returning capital to shareholders and its confidence in future performance.
Financial Highlights
49 data points| Revenue | $46.71B |
| Cost of Revenue | $25.23B |
| Gross Profit | $21.48B |
| SG&A Expenses | $14.80B |
| Net Income | $6.05B |
| EPS (Basic) | $3.83 |
| EPS (Diluted) | $3.75 |
| Shares Outstanding (Basic) | 1.58B |
| Shares Outstanding (Diluted) | 1.61B |
Key Highlights
- 1Achieved record revenues of $46.7 billion in FY22, a 5% increase year-over-year, driven by strong performance in EMEA, North America, and APLA.
- 2NIKE Direct revenue grew 14% (15% currency-neutral), now representing 42% of total NIKE Brand revenue, with NIKE Brand Digital sales up 18%.
- 3Gross margin expanded by 120 basis points to 46.0% due to higher NIKE Direct margins, a greater mix of full-price sales, and favorable currency exchange rates, despite increased freight and logistics costs.
- 4Inventory levels increased by 23% to $8.4 billion, largely due to supply chain disruptions and elevated transit times impacting product availability.
- 5Greater China revenue saw a 9% decline (13% currency-neutral) due to COVID-19 resurgence, government restrictions, and marketplace dynamics.
- 6Announced a new $18 billion share repurchase program, replacing the previous $15 billion program, demonstrating confidence in financial health and commitment to shareholder returns.
- 7Divestitures of legal entities in Argentina and Uruguay are underway, with expected closure in Q3 FY23, impacting future revenue reporting.