Nike Reveals Solid Q3 Financial Performance
Nike has reported solid results for its fiscal third quarter ending on February 28th, 2023, posting a revenue increase of 14% from the previous year to US$12.4 billion.
The growth was primarily driven by strong demand in North America, with revenue rising by double digits, however, revenue from China dropped 8% due to the country’s COVID policies.
While the company’s digital sales saw a strong increase of 20%, its net income fell 11% to US$1.2 billion, and diluted earnings per share decreased by 9% to US$0.79.
Nike cited several challenges that impacted its performance, including inflation, supply chain shortages, and Russia’s invasion of Ukraine, which led to increased costs and disrupted the company’s operations.
Despite the challenges, Nike’s third-quarter results surpassed analysts’ expectations, as noted by CNBC.
The company also acknowledged that the holiday season could have been even stronger had there been enough merchandise on hand.
Commenting on their financial performance, Nike CFO, Matthew Friend, said: “We are focused on what we can control.”
“There are several new dynamics creating higher-levels of volatility,” he said.
To address supply chain issues, Nike plans to move up its buying timelines, however, due to ongoing uncertainty and challenges in the global market, Nike did not provide an outlook for the rest of the year.