NIKE has reported fiscal 2021 financial results for its first quarter ended August 31, 2020. First quarter reported revenues were US$10.6 billion, down 1% on a reported basis and flat on the prior year on a currency-neutral basis.
NIKE Direct sales were US$3.7 billion, up 12% on a reported basis, and up 13% on a currency-neutral basis, with growth across all geographies.
NIKE Brand digital sales increased 82%, or 83% on a currency-neutral basis, with double-digit increases across North America, Greater China, and APLA and triple-digit growth in EMEA.
Diluted earnings per share for the quarter was US$0.95, up 10%. Inventory rose 15% versus the prior year but decreased 9% versus the prior quarter.
“Our results this quarter continue to demonstrate NIKE’s full competitive advantage, as we strengthen our position in the midst of disruption,” said John Donahoe, President and CEO at NIKE. “In this dynamic environment, no one can match our pace of launching innovative product and our brand’s deep connection to consumers. These strengths, coupled with our digital acceleration, are unlocking NIKE’s long-term market potential.”
He continued, “Our first quarter revenue performance was impacted by strong NIKE Brand digital growth of 82%, offset by lower revenue in our wholesale business and NIKE-owned stores. Nearly all of the NIKE-owned physical doors were open during the quarter across North America, EMEA and Greater China with approximately 90% of doors open in APLA.
“However, despite a majority of stores open in the quarter, we continue to experience year-over-year declines in physical retail traffic across the marketplace due to COVID-19 impacts and safety related measures, offset partially by higher conversion rates.
“EMEA returned to growth of 5% on a reported basis, led by triple-digit growth in digital. Greater China revenue increased by 6% on a reported basis and 8% on a currency-neutral basis, led by digital and NIKE Factory Stores.
Matt Friend, Executive Vice President and Chief Financial Officer at NIKE, said “NIKE is recovering faster based on accelerating brand momentum and digital growth, as well as our relentless focus on normalizing marketplace supply and demand.
“We continue to drive investment in capabilities that will fuel our consumer-led digital transformation, catalyzing long-term growth and profitability for NIKE.”
