NIKE has reported financial results for its third quarter ended February 28, 2021. Revenues in its fiscal Q3 were US$10.4 billion, up 3% year on year – down 1% on a currency-neutral basis.
Sales were led by Greater China, which reported revenue growth of 51%. NIKE Direct sales accounted for around 40% of overall revenue at US$4.0 billion. The direct-to-consumer part of its business was up 20% on a reported basis, and +16% on a currency-neutral basis.
NIKE Brand digital sales increased 59%, or +54% on a currency-neutral basis, with strong double-digit reported increases in all geographies.
North America reported revenue declined 10% (-11% on a currency-neutral basis). This was due to supply chain challenges, including global container shortages and US port congestion, which impacted the flow of inventory and timing of wholesale shipments.
“NIKE continues to deeply connect with consumers all over the world driven by our strong competitive advantages,” said John Donahoe, President & CEO at NIKE.
“Our strategy is working, as we accelerate innovation and create the seamless, premium marketplace of the future. I’ve never been more confident in our leadership and teams to operate with agility in a dynamic environment.”
He continued, “Our third quarter revenue performance was impacted by disruption related to the COVID-19 pandemic, particularly in North America and EMEA. North America revenues declined 11% on a currency-neutral basis, largely driven by global container shortages and US port congestion, which delayed the flow of inventory in the third quarter by more than three weeks, impacting timing of wholesale shipments, and partially offset by NIKE Direct growth of 15%.
“EMEA physical retail sales declined, as 45% of NIKE-owned stores experienced mandatory COVID-19 related closures for the last two months of the quarter, however this was partially offset by digital sales, which increased 60%.
“Today, approximately 65% of stores in EMEA are open or operating on reduced hours. Greater China revenues increased 42% on a currency-neutral basis.”
Matt Friend, Executive Vice President and Chief Financial Officer at NIKE said “NIKE’s brand momentum is as strong as ever and we are driving focused growth against our largest opportunities.
“We continue to see the value of a more direct, digitally-enabled strategy, fuelling even greater potential for NIKE over the long term.”
