NIKE has reported financial results for its fiscal 2021 fourth quarter and full year ended May 31, 2021. The company’s fourth quarter revenues were US$12.3 billion, up 96% compared to the prior year and increasing 21% compared to the fourth quarter of 2019.
Full year reported revenues increased 19% to US$44.5 billion. NIKE Direct fourth quarter sales increased 73% to US$4.5 billion. Gross margin for the fourth quarter increased 850 basis points to 45.8%. The increase in gross margin reflects favourable margins in the NIKE Direct business.
“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,” said John Donahoe, President & CEO at NIKE. “FY21 was a pivotal year for NIKE as we brought our Consumer Direct Acceleration strategy to life across the marketplace.
“Fuelled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for NIKE’s long-term growth.”
He continued, “Our fourth quarter revenue growth was led by higher wholesale shipments due to the annualization of COVID-19 related physical retail closures in the prior year in North America, EMEA and APLA.
“As physical retail re-opened, NIKE Brand Digital continued to deliver strong revenue growth of 41% versus prior year and 147% compared to the fourth quarter of 2019. North America delivered record revenues, up 141% on a reported basis for the fourth quarter, up 29% compared to the fourth quarter of 2019, including increased wholesale revenue due to delayed shipments from the previous quarter.
“As markets re-opened and sport returned, North America Digital growth continued to be strong, increasing 54% versus prior year and 177% compared to the fourth quarter of 2019.”
EMEA’s fourth quarter reported revenues increased 124%, up 21% compared to the fourth quarter of 2019, despite temporary COVID-19 related store closures throughout the quarter. As physical retail was temporarily closed, EMEA Digital fourth quarter sales increased 40%, or 170% compared to the fourth quarter of 2019. Today, NIKE reports that approximately 99% of stores in EMEA are open or operating on reduced hours.
Matt Friend, Executive Vice President and Chief Financial Officer at NIKE, said “NIKE’s brand momentum is a testament to our authentic consumer connections, digital strength and continued operational execution
“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.”
Revenues for NIKE, Inc. rose 96% to US$12.3 billion, up 88% on a currency-neutral basis, largely driven by the recovery of business operations due to the impact of COVID-19 in the prior year.
Revenues for the NIKE Brand were US$11.8 billion, up 88% to prior year on a currency-neutral basis, driven by triple-digit growth in wholesale business and strong double-digit growth in NIKE Direct.
NIKE adds that it has a strong track record of investing to fuel growth and consistently increasing returns to shareholders through dividends and share repurchases, including 19 consecutive years of increasing dividend payouts. In fiscal 2021, the company returned approximately US$2.3 billion to shareholders, including:
- Dividends of US$1.6 billion, compared with US$1.5 billion in fiscal 2020.
- Share repurchases totalling approximately US$650 million for fiscal 2021, reflecting 4.9 million shares retired as part of the four-year, US$15 billion program approved by the Board of Directors in June 2018.
During the fourth quarter of 2021, NIKE resumed share repurchase activity. As of May 31, 2021, a total of 50 million shares for US$4.7 billion had been repurchased under this program.
