Nike revenues remain flat in Q2
While closures had an impact across the group, North America and EMEA delivered growth due to higher levels of in-transit inventory going into the period
Nike has announced that revenues in its second quarter rose by 1% to $11.4bn (£8.6bn), remaining flat as it continued to manage the ongoing impact of supply chain challenges across the global marketplace.
Revenues in Greater China and APLA declined, however, largely due to lower levels of available inventory resulting from Covid-19 related factory closures. Nonetheless, while closures had an impact across the group, North America and EMEA delivered growth due to higher levels of in-transit inventory going into the period.
Despite inventory constraints and supply chain challenges over the period, Nike Direct sales rose by 8% to $4.7bn (£3.5bn), led by North America Direct growth of 30%, including “record” Black Friday week results.
Meanwhile, Nike Brand Digital delivered strong revenue growth of 11%, led by a 40% growth in North America, though this was partially offset by a decline in Greater China.
According to Nike, growth across Nike Direct was in part attributed to the “steady normalisation” of owned physical retail, with sales in Nike owned stores up 4% over the period.
John Donahoe, president and CEO, Nike, Inc, said: “Nike’s strong results this quarter provide further proof that our strategy is working, as we execute through a dynamic environment.
“We are now in a much stronger competitive position today than we were 18 months ago. And I want to thank our roughly 75,000 global teammates for all their work to provide consumers with the compelling new product, innovation and experiences that only Nike can deliver.”
Matt Friend, executive vice president and chief financial officer, Nike, Inc., added: “Our second quarter results reflect our deep consumer connections, the continued strength of our brands and strong marketplace demand.
“As we navigate through short-term supply challenges, we are focused on executing our Consumer Direct Acceleration strategy to fuel our long-term financial outlook.”
