Nike Q2 revenues surge 17% to $13.3bn

Nike saw its revenues reach $13.3bn (£10.9bn) during the second quarter ended 30 November 2022, which is an increase of 17% compared to the prior year and an increase of 27% on a currency-neutral basis. 

In addition, the sportswear giant’s direct sales increased by 16%, reaching $5.4bn (£4.4bn), while its digital sales increased by 25% on a reported basis for the second quarter. 

As a result, the group saw its diluted earnings per share for the quarter reach $0.85 (£0.70), which was a 2% increase from $0.64 (£0.53). 

Meanwhile, the retailer’s inventories were up 43% to $9.3bn (£7.6bn)  in the quarter, compared with last year. Meanwhile, it confirmed an excess of merchandise led to “aggressive” markdowns, which helped reduce Nike’s gross margins to 42.9% from 45.9% a year ago. 

This comes as inventories saw a decline from $9.7bn (£7.9bn) in the previous quarter. However, According to the group CEO, the company is already past its inventory peak. 

The group’s gross margins also decreased 3% to 42.9%.

John Donahoe, president and CEO of Nike, said: “Nike’s results this quarter are a testament to our deep connection with consumers. Our growth was broad-based and was driven by our expanding digital leadership and brand strength. These results give us confidence in delivering the year as our competitive advantages continue to fuel our momentum.”

Matthew Friend, executive vice president and CFO of Nike, added: “Consumer demand for Nike’s portfolio of brands continues to drive strong business momentum in a dynamic environment. We remain focused on what we can control, and we are on track to deliver on our operational and financial goals, setting the foundation for sustainable, profitable growth.”