Nike posts strong third quarter growth
Nike has seen its third quarter revenue increase by 5% year-on-year to $10.9 billion and by 8% on a currency neutral basis.
In the period ending 28 February, sales through the sportswear brand’s direct-to-consumer division rose by 15% to $4.6 billion.
The company’s Nike brand online sales were up 19%, or 22% on a currency neutral basis, following a strong performance in its North American, APLA and EMEA regions, which was partially offset by declines in Greater China.
Nike president and chief executive John Donahoe said: “Nike Inc’s strong results this quarter show that our “Consumer Direct Acceleration” strategy is working, as we invest to achieve our growth opportunities. Fuelled 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.”
Gross margin also rose, increasing by 100 basis points to 46.6% which was driven by margin expansion in the Nike Direct business, lower markdowns and a higher mix of full-price sales.
Matt Friend, Nike chief financial officer, said: “Our third quarter results demonstrate Nike’s ability to navigate through volatility, while continuing to serve consumers directly and digitally, at scale. Marketplace demand continues to significantly exceed available inventory supply, with a healthy pull market across our geographies.”
