Nike Inc. continues to outperform.
The Beaverton, Ore.-based athletic attire and equipment group revealed quarterly and full-year earnings Thursday afternoon, bettering on the highest and backside strains because of power in all channels throughout the latest quarter. Nike’s inventory shot up practically 7 % in after-hours buying and selling in consequence.
“Nike’s strong results this quarter and full fiscal year demonstrate Nike’s unique competitive advantage and deep connection with consumers all over the world,” John Donahoe, the group’s president and chief government officer, mentioned in a press release. “[Fiscal year] 21 was a pivotal year for Nike as we brought our Consumer Direct Acceleration strategy to life across the marketplace. Fueled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for Nike’s long-term growth.”
Total revenues for the three-month interval ending May 31, surged 96 % to $12.3 billion, up from $6.3 billion a yr in the past. For the total fiscal yr, revenues have been $44.5 billion, in contrast with $37.4 billion final yr.
The firm logged $1.5 billion in income in the course of the quarter, in contrast with losses of $790 million a yr in the past, and greater than $5.7 billion in income for the yr, up from $2.5 billion in 2020’s fiscal yr, in consequence.
By area, revenues grew 141 % on a reported foundation in North America in the course of the fourth quarter, up 29 % in contrast with 2019. Revenues within the Europe, Middle East and Africa area grew 124 %, up 21 % in contrast with 2019, regardless of non permanent COVID-19-related retailer closures all through the quarter. It was additionally the seventh consecutive yr of double-digit, currency-neutral development within the Greater China market.
Nike’s fourth-quarter direct gross sales elevated 73 %. In e-commerce, Nike’s digital gross sales grew 41 % in the course of the quarter, in contrast with the identical time final yr, and have been up 147 % in contrast with 2019’s pre-pandemic fourth quarter. Fourth-quarter digital revenues within the EMEA area elevated 40 %, in contrast with 2020, or up 170 %, in contrast with 2019’s fourth quarter.
Donahoe advised analysts on Thursday night’s convention name that Nike’s digital enterprise nearly doubled within the final yr, and is now price about $9 billion.
“We continue to see digital as our leading growth [strategy] in fiscal 2022, and we see no sign of this shift slowing,” he mentioned on the decision. “This is a time when strong brands can get stronger.”
He credited a return of sporting occasions, the surge in on-line buying and an elevated curiosity in well being and wellness as development drivers. Future development alternatives, he mentioned, embrace the ladies’s and worldwide companies, in addition to the Jordan model, which Donahoe mentioned elevated 31 % in the course of the 2021 fiscal yr to $5 billion.
Also on Thursday, Nike revealed a partnership with Louis Vuitton for the brand new Air Force 1 sneaker, a part of Virgil Abloh’s spring 2022 males’s assortment.
“Nike’s brand momentum is a testament to our authentic consumer connections, digital strength and continued operational execution,” mentioned Matt Friend, government vice chairman and chief monetary officer at Nike. “As we advance our consumer-led digital transformation, we are building a new financial model that will continue to fuel long-term sustainable, profitable growth for Nike.”
The firm mentioned about 99 % of shops within the EMEA area are presently open or working on lowered hours. The firm ended the quarter with $9.4 billion in long-term debt and $9.8 billion in money and money equivalents. Nike now expects fiscal yr 2022’s revenues to extend within the low double digits to about $50 billion, with increased positive factors within the first half.
Shares of Nike, which closed up 0.38 % to $133.60 every, are up 31.7 %, year-over-year.
“Our goal isn’t just to take market share; our goal is to grow the entire market,” Donahoe mentioned on the decision.