NIKE Reveals 5% Revenue Rise In 2022 Report

Apparel brand, NIKE, has revealed a 5% increase in revenue to US$44.4 billion (AUD$64.2 billion) as well as a 6% growth in net income compared to last year.

The apparel giant’s growth in revenue was driven by NIKE Direct’s 14% growth to US$18.7 billion (AUD$27.2 billion), compared to the US$16 billion (AUD$23.2 billion) recorded last year.

Commenting on their fiscal year performance, NIKE president and CEO, John Donahoe, said: “NIKE’s results this fiscal year are a testament to the unmatched strength of our brands and our deep connection with consumers.”

“Our competitive advantages, including our pipeline of innovative product and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport,” Donahoe said.

NIKE also saw an increase in selling and administration costs to US$4 billion (AUD$5.8 billion), an 8% increase, due to strategic investments, increases in NIKE Direct variable costs and investments in digital marketing to support the increase in digital demand.

Gross margin increased 120 basis points to 46% due to elevated freight and logistics costs, and higher inventory in China.

Discussing NIKE’s long-term growth and strategy, executive vice president and chief financial officer, Matt Friend, said: “In this dynamic environment, NIKE’s unrivalled strengths continue to fuel our momentum.”

“Two years into executing our Consumer Direct Acceleration, we are better positioned than ever to drive long-term growth while serving consumers directly at scale,” Friend said.

North America recorded US$18.4 billion (AUD26.7 billion) in revenue, Europe, the Middle East and Asia saw 9% growth to US$12.5 billion (AUD$18.1 billion) and the Asia-Pacific grew 11% to US$6 billion (AUD$8.7 billion), while revenue in Greater China fell 9% to US$7.5 billion (AUD$10.9 billion).

The NIKE digital brand grew by 18%, while stores saw 10% growth, resulting in US$18.7 billion (AUD $27 billion) in revenue. NIKE’s inventory was up 23% to US$8.4 billion (AUD$12 billion) compared to last year, which was due to the ongoing supply chain disruptions.

Additionally, the NIKE board of directors has authorised a new four-year US$18 billion programme to repurchase all Class B common stock.