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Nike Sees Sales Growth in Fiscal 2022 Q3 Performance

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by Ibukun Ogundare · 3 min read
Nike Sees Sales Growth in Fiscal 2022 Q3 Performance
Photo: Unsplash

Nike has provided its shareholders with increased dividends payouts for 20 consecutive years. Similarly, in the fiscal Q3, Nike returned about $1.7 billion to all its shareholders.

American multinational corporation Nike (NYSE: NKE) has released its fiscal third-quarter (Q3) report, surpassing analysts’ estimates. Shortly after the announcement, the multinational company saw a 5% jump in after-hours trading. While Nike reported its fiscal 2022 financial results for its Q3, the company said increased demand in North America fueled sales growth.

After the release of the fiscal Q3 report, the president and CEO of NIKE, John Donahoe, commented:

“NIKE’s strong results this quarter show that our Consumer Direct Acceleration strategy is working, as we invest to achieve our growth opportunities. Fueled by deep consumer connections, compelling product innovation and an expanding digital advantage, we have the right playbook to navigate volatility and create value through our relentless drive to serve the future of sport.”

Nike Releases Fiscal 2022 Q3 Results

During the quarter, revenue grew 5% year-over-year to $10.9 billion, while Direct sales surged 15% on a reported basis. According to the American corporation, NIKE Direct sales were $4.6 billion. This also represents a 17% addition on a currency-neutral basis. Additionally, NIKE brand sales pumped 19% or 22% on a neutral basis. The company tied the profits realized in the Brand Digital Sales to a 33% growth in North America. Furthermore, gross margin added 100 points to 46.6%, while diluted earnings per share for the fiscal Q3 was $0.87. Meanwhile, analysts earlier predicted earnings per share to be $0.71.

On the other hand, revenues for Converse were down 1% on a reported basis to $567 million. Also, the revenues were up 2% on a currency-neutral basis. Majorly, a strong performance in North America and Europe contributed to the revenues.

Selling and administrative expense also advanced 13% to $3.4 billion. Specifically, demand creation went up 20% to $854 million while operating overhead costs climbed 11% to $2.6 billion. Additionally, the effective tax rate increased from 11.4% the same quarter in the previous year to 16.4%. This happened as a result of a shift in Nike’s earnings mix.

Nike’s Shareholders Returns

Nike has provided its shareholders with increased dividends payouts for 20 consecutive years. Similarly, in the fiscal Q3, Nike returned about $1.7 billion to all its shareholders. Matthew Friends, Nike’s CFO, noted that the company focuses on what it can control.

With the alarming inflation around the world, the ongoing war, and restrictions in supply chains, Nike is delaying releasing its outlook for the year ahead. Nike explained that it would wait until its fiscal Q4 financial results unveiling before announcing the outlook for the coming year. After the release of the Q3 report, the C.F.O Matthew Friend said that they “are focused on what they [we] can control” on a conference call acknowledging the many inclinations surrounding production.

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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