How did NIKE's revenue and profit perform in the third quarter of fiscal year 2021 compared to the prior year?

NIKE's revenue increased by 3% to $10.36 billion in the third quarter of fiscal year 2021, compared to $10.10 billion in the same period last year. Net income saw a substantial increase of 71%, reaching $1.45 billion, up from $847 million in the prior year's third quarter. Diluted earnings per share also grew significantly by 70% to $0.90.

What was the impact of NIKE's digital strategy on its performance?

NIKE's digital strategy, particularly its NIKE Direct business, continued to be a strong growth driver. On a currency-neutral basis, NIKE Direct revenues increased by 16% in the third quarter. Digital sales alone reached $2.2 billion for the quarter, highlighting the effectiveness of the company's investment in its direct-to-consumer channels.

Were there any significant regional performance differences?

Yes, there were notable regional differences. Greater China showed strong performance with a 42% currency-neutral revenue increase in the third quarter. However, North America and EMEA experienced revenue declines on a currency-neutral basis, primarily due to supply chain disruptions and COVID-19 related impacts such as store closures. The Asia Pacific & Latin America region also saw a currency-neutral revenue decrease.

How did supply chain issues and COVID-19 affect NIKE's operations?

Supply chain disruptions, including container shortages and transportation delays, impacted inventory flow and led to delayed shipments, particularly affecting North America's revenue growth. In EMEA, COVID-19 related lockdowns resulted in temporary store closures, impacting both NIKE-owned stores and wholesale partners. Despite these challenges, the company managed its operations to maintain profitability and liquidity.

NKE 10-Q Quarterly Report Q3 FY2021 — Revenue, Net Income, EPS

Summary

NIKE, Inc. reported solid financial results for the third quarter and the first nine months of fiscal year 2021, demonstrating resilience despite ongoing challenges from the COVID-19 pandemic. For the third quarter, revenues increased by 3% year-over-year to $10.4 billion, with net income surging by 71% to $1.45 billion. Diluted earnings per share also saw a significant rise of 70% to $0.90. The company's strategic focus on digital transformation continued to pay off, with NIKE Direct revenues growing 16% currency-neutral and digital sales reaching $2.2 billion in the third quarter. Despite supply chain disruptions affecting North America and ongoing COVID-19 related lockdowns impacting EMEA, NIKE's performance was bolstered by strong growth in Greater China, which saw a 42% currency-neutral revenue increase in the third quarter. The company also reported improved gross margins for the quarter, driven by higher full-price product margins. While demand creation expenses were reduced, operating overhead also saw a slight decrease, contributing to overall profitability. NIKE ended the period with a strong liquidity position, holding $12.5 billion in cash and short-term investments.

Financial Highlights

48 data points

Beta

Revenue

$10.36B

0.5% Gross Margin

Net Income

$1.45B

0.1% Net Margin

EPS (Diluted)

$0.90

Total Assets

$36.19B

Cash & Equivalents

$8.52B

Free Cash Flow

$1.11B

Financial Statements

Beta

Revenue	$10.36B
Cost of Revenue	$5.64B
Gross Profit	$4.72B
SG&A Expenses	$3.04B
Net Income	$1.45B
EPS (Basic)	$0.92
EPS (Diluted)	$0.90
Shares Outstanding (Basic)	1.58B
Shares Outstanding (Diluted)	1.62B

Key Highlights

1Total revenues for the third quarter of fiscal 2021 increased by 3% to $10.36 billion compared to the prior year.
2Net income for the third quarter surged by 71% to $1.45 billion, with diluted EPS rising 70% to $0.90.
3NIKE Direct revenue grew 16% on a currency-neutral basis in Q3, with digital sales reaching $2.2 billion.
4Greater China demonstrated robust growth, with currency-neutral revenues up 42% in Q3.
5Gross margin improved by 130 basis points in Q3, driven by higher NIKE Brand full-price product margins.
6Selling and administrative expenses decreased by 7% for both the quarter and the nine-month period.
7The company maintained a strong liquidity position, ending the period with $12.5 billion in cash and short-term investments.

NIKE, Inc. Quarterly Report for Q3 Ended Feb 28, 2021

Summary

Financial Highlights

Key Highlights

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