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Nike Inc. held back in the third quarter of 2023 by its stocks

Nike Inc. held back in the third quarter of 2023 by its stocks

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The Oregon-based giant is certainly defying analysts with total sales up 14% to $12.4 billion. But at the same time, its net profit fell to 1.2 billion dollars, with a gross margin hurt by a profusion of inventory to be liquidated.

 

For Nike Inc (eponymous brand, Converse and Jordan), the third quarter of its fiscal year (ending in February 2023) was half fig and half grape. The sports equipment manufacturer has certainly recorded, between December and February 2023, a revenue increase in comparable of 14% to 12.4 billion dollars, driven by its sales of sneakers and sneakers. This is better than analysts’ forecasts, who were expecting a turnover of 11.47 billion dollars, according to a Refinitiv survey.

 

However, this quarter will be marked by a further erosion of its gross margin. Its net profit fell by 11% to 1.2 billion dollars over the period.

 

In detail: the turnover of the Nike brand alone, was 11.8 billion dollars, up 14%.

 

Sales of sports shoes contributed strongly to this, with a jump of 20% over the period. The United States and Europe did best, with increases of +31% and +28% respectively on a comparable basis. Growth was more modest (+14%) in Asia-Pacific-Latin America (excluding China). In this category, only China declined (-4%).

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For its part, Converse’s sales increased by 8% to 612 million dollars.

 

Sales temporarily at half-mast in China

 

The third largest market in terms of revenue for the group as a whole, Greater China, despite the gradual lifting of health restrictions, recorded growth of only + 1% excluding the currency effect in the third quarter and even fell by 8% on a comparable basis to 1.99 million dollars over the period.

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Featured photo : © Nike

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