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American sportswear firm Nike kicks off FY22 with 16% sales hike

24
Sep '21

Pic: Nike

Nike, an American apparel and footwear company, has reported a 16 per cent revenues growth to $12.2 billion in the first quarter (Q1) of FY22 ended on August 31, 2021, over the same period of previous fiscal. Led by North America, Nike brand’s digital sales gained momentum with a jump of 29 per cent during the three-month period over Q1 FY21.

“Nike’s strong results this quarter are continued proof of our deep consumer connections, unrelenting innovation pipeline and a digital advantage that fuels our brand momentum,” John Donahoe, president and CEO of Nike, said in a press release. “We have the right playbook to navigate macroeconomic dynamics, as we create value through our relentless drive to fuel the future of sport.”

The company’s direct sales were up 25 per cent due to the steady normalisation of owned physical retail, which grew 24 per cent, exceeding pre-pandemic levels from the first quarter of fiscal 2020.

“Nike is a growth company with a market opportunity as large as it's ever been,” Matt Friend, executive vice president and chief financial officer of Nike said. “Our Q1 results illustrate how Nike’s Consumer Direct Acceleration strategy continues to fuel growth and transform our long-term financial model.”

Net income for Q1 increased 23 per cent to $1.8 billion (Q1 FY21: $1.5 billion). Gross profit improved to $5.7 billion ($4.7 billion).

Regionally, sales in North America rose to $4.8 billion ($4.2 billion), while Europe, Middle East & Africa recorded sales of $3.3 billion ($2.9 billion). Moreover, sales from China totalled to $1.9 billion ($1.8 billion), and Asia Pacific & Latin America region achieved sales of $1.4 billion ($1.0 billion) during the first quarter.

Fibre2Fashion News Desk (JL)

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