Summary
NIKE, Inc. reported a strong first quarter for fiscal year 2022, with revenues increasing by 16% year-over-year to $12.2 billion. This growth was driven by broad-based strength across its operating segments, particularly North America, APLA, and EMEA, with a notable 12% increase on a currency-neutral basis. Net income rose by 23% to $1.9 billion, translating to a diluted EPS of $1.16, a 22% increase compared to the prior year period. The company's strategic shift towards Direct to Consumer (DTC) channels continues to pay off, with NIKE Direct revenues growing 28% (25% currency-neutral) and now representing 40% of total NIKE Brand revenues. Despite robust demand, NIKE is navigating significant supply chain disruptions, including extended transit times and factory closures in Vietnam and Indonesia due to COVID-19, which are expected to impact product availability and revenue growth for the remainder of the fiscal year. The company also experienced higher transportation and logistics costs. Nevertheless, NIKE's gross margin improved by 170 basis points to 46.5%, benefiting from higher NIKE Direct margins and a greater mix of full-price sales, partially offset by increased freight costs.
Financial Highlights
49 data points| Revenue | $12.25B |
| Cost of Revenue | $6.55B |
| Gross Profit | $5.70B |
| SG&A Expenses | $3.57B |
| Net Income | $1.87B |
| EPS (Basic) | $1.18 |
| EPS (Diluted) | $1.16 |
| Shares Outstanding (Basic) | 1.58B |
| Shares Outstanding (Diluted) | 1.62B |
Key Highlights
- 1Total revenues increased by 16% to $12.2 billion, driven by strong consumer demand.
- 2Net income grew by 23% to $1.9 billion, with diluted EPS rising 22% to $1.16.
- 3NIKE Direct revenues surged 28% (25% currency-neutral), now accounting for 40% of NIKE Brand total revenues.
- 4Gross margin improved by 170 basis points to 46.5%, reflecting improved direct-to-consumer profitability and full-price sales mix.
- 5Significant supply chain disruptions due to COVID-19 in Vietnam and Indonesia are expected to impact future product availability and revenue.
- 6Selling and administrative expenses increased by 20%, driven by higher demand creation and operating overhead costs.
- 7The company repurchased $752 million of common stock during the quarter, resuming its share repurchase program.