Summary
NIKE, Inc. reported solid performance for the second quarter and first six months of fiscal year 2022, with revenues showing modest growth and net income increasing year-over-year. The company navigated ongoing supply chain challenges, including factory closures in Vietnam and Indonesia due to COVID-19, and extended inventory transit times, which impacted product availability, particularly in Greater China and Asia Pacific & Latin America. Despite these headwinds, NIKE's direct-to-consumer (DTC) business, including digital commerce and owned stores, demonstrated resilience and growth, highlighting the effectiveness of its Consumer Direct Acceleration strategy. Gross margins improved significantly due to lower promotional activity, a higher mix of full-price sales, and favorable foreign currency impacts, though partially offset by increased freight and logistics costs. The company's strategic investments in digital transformation and brand campaigns continue, with a focus on creating a premium and seamless consumer experience. While supply chain disruptions are expected to persist, NIKE remains committed to its long-term financial goals. The company also actively managed its capital through share repurchases and maintained a strong liquidity position.
Financial Highlights
49 data points| Revenue | $11.36B |
| Cost of Revenue | $6.14B |
| Gross Profit | $5.21B |
| SG&A Expenses | $3.76B |
| Net Income | $1.34B |
| EPS (Basic) | $0.84 |
| EPS (Diluted) | $0.83 |
| Shares Outstanding (Basic) | 1.58B |
| Shares Outstanding (Diluted) | 1.62B |
Key Highlights
- 1Revenue for the second quarter of fiscal 2022 increased 1% to $11.4 billion, and for the first six months increased 8% to $23.6 billion.
- 2Net income for the second quarter rose 7% to $1.337 billion, and for the first six months increased 16% to $3.211 billion.
- 3Gross margin significantly improved, up 280 basis points in Q2 and 230 basis points in the first six months, driven by reduced promotions and a higher mix of full-price sales.
- 4Direct-to-Consumer (DTC) revenues grew 8% currency-neutral in Q2 and 16% currency-neutral in the first six months, underscoring the strength of digital and owned retail channels.
- 5Greater China revenues declined 20% on a reported basis (24% currency-neutral) in Q2 and 6% (13% currency-neutral) in the first six months, impacted by inventory supply issues and COVID-19 related closures.
- 6The company repurchased $1.7 billion of common stock in the first six months of fiscal 2022, a significant increase from the prior year.
- 7NIKE continued to invest in demand creation and operating overhead, with selling and administrative expenses increasing 15% in Q2 and 17% in the first six months, driven by strategic investments and increased marketing spend.