American sportswear company Nike's revenues soar 10% in FY23

Nike Direct revenues rose to $21.3 billion, marking a 14 per cent upswing on a reported basis and a 20 per cent surge on a currency-neutral basis. This growth was spearheaded by Nike brand digital, which saw a 24 per cent rise, and Nike-owned stores with a 14 per cent increment, the company said in a news release.

Converse, another brand under Nike, reported revenues of $2.4 billion, an increase of 3 per cent on a reported basis and 8 per cent on a currency-neutral basis. The revenue boost was driven by double-digit growth in North America, though partly offset by declines in Asia.

However, the gross margin saw a decrease of 250 basis points to 43.5 per cent. Selling and administrative expense rose by 11 per cent to $16.4 billion.

Nike reported a net income of $5.1 billion, down 16 per cent from the previous year, with diluted earnings per share at $3.23, down 14 per cent, the release added.

“Nike’s strong results make clear that our strategy is working,” said John Donahoe, president and CEO, Nike. “FY23 was a milestone year for Nike as our unique advantages continue to drive competitive separation. Our investment in innovation and our digital leadership are fuelling broad- based growth across our portfolio of brands, as we create value by serving the future of sport.”

For the fourth quarter (Q4) of FY23, the company posted a 5 per cent year-on-year (YoY) increase in revenues to $12.8 billion, or 8 per cent on a currency-neutral basis. The Nike brand saw a revenue growth of 5 per cent YoY to $12.2 billion on a reported basis and 8 per cent on a currency-neutral basis. However, the gross margin decreased by 140 basis points YoY to 43.6 per cent, selling and administrative expense increased 8 per cent YoY to $4.4 billion, and the net income dropped by 28 per cent YoY to $1 billion. The diluted earnings per share also declined by 27 per cent YoY to $0.66 compared to the previous year.

ALCHEMPro News Desk (DP)