Nike revenues hit $12.4bn in Q3

Nike Inc. has revealed that its third quarter revenues slightly increased on both a reported and currency-neutral basis to $12.4bn (£9.85bn).

It comes as it reported revenues for the Nike Brand of $11.9bn, up 2% on a reported and currency-neutral basis, as currency-neutral growth in North America, Greater China and APLA was offset by declines in EMEA.

Meanwhile, revenues for Converse were £495m, down 19% on a reported basis and down 20% on a currency-neutral basis, primarily due to declines in North America and Europe. In addition, it confirmed that wholesale revenues jumped 3% to $6.6bn (£5.2bn).

Gross margin increased 150 basis points to 44.8%, primarily driven by strategic pricing actions and lower ocean freight and logistics costs, partially offset by higher product input costs and restructuring charges.

It also noted selling and administrative expenses increased 7%to $4.2bn (£3.3bn), including $340m (£270m) of restructuring charges.

John Donahoe, president and CEO, Nike, said: “We are making the necessary adjustments to drive Nike’s next chapter of growth. We’re encouraged by the progress we’ve seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace.”

Matthew Friend, executive VP and CFO, Nike, said: “Our teams are focused on what matters most to return to strong growth. We are taking action to build a faster, more efficient Nike and maximise the impact of our new innovation cycle.”