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Nike, Inc. has reported its revenues rose 5% year-on-year from $10.35bn (£7.83bn) to $10.9bn (£8.24bn) in the third quarter (Q3) of FY22, following the “steady normalisation” of traffic in owned physical retail, with Nike owned stores up 14%.
Revenues for the Nike Brand were up 8% year-on-year to $10.3bn (£7.79bn), led by 13% growth in EMEA. However, revenues for Converse fell by 1% to $567m (£428.98m), led by “strong” performance in North America and Europe, partially offset by declines in Asia.
Nike Direct also saw sales grow 15% to $4.6bn (£3.48bn), however, wholesale revenues declined 1%, with growth in EMEA and APLA offset by declines in North America and Greater China, and net income dropped 4% to $1.4bn (£1.05bn).
Additionally, digital sales also fueled growth by 19%, driven by 33% growth in North America, APLA and EMEA, but partially offset by declines in Greater China.
Overall, operating overhead expenses increased 11% to $2.6bn (£1.96bn) due to higher technology investments and wage-related expenses.
Meanwhile, inventories for Nike were up 15% to $7.7bn (£5.82bn), driven by elevated in-transit inventories due to extended lead times from ongoing supply chain disruptions, partially offset by strong consumer demand during the quarter.
John Donahoe, president and CEO of Nike, said: “Nike’s strong results this quarter show that our Consumer Direct Acceleration strategy is working, as we invest to achieve our growth opportunities.
“Fueled 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.”
Matt Friend, executive vice president and chief financial officer at Nike, added: “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.”
