Nike Inc. today reported fiscal 2022 financial results for its second quarter ending on November 30, 2021. The call opened with a tribute to Virgil Abloh from Nike CEO John Donahoe: “He was a brilliant creative force who shared a passion for challenging the status quo and pushing forward a new vision while inspiring multiple generations along the way. But what stood out to me personally about Virgil was his humility and his humanity.”
Here are some key numbers provided by the company in today’s call:
- Second quarter reported revenues were $11.4 billion, up 1 percent compared to the prior year and flat on a currency-neutral basis.
- NIKE Direct sales were $4.7 billion, up 9 percent on a reported basis and up 8 percent on a currency-neutral basis.
- NIKE Brand Digital sales increased 12 percent, or 11 percent on a currency-neutral basis, led by 40 percent growth in North America.
- Gross margin increased 280 basis points to 45.9 percent.
- Diluted earnings per share for the quarter was $0.83, up 6 percent.
Of interest to many is Nike’s continued push for DTC (direct to consumer) and digital sales. Over the past four years, according to Nike, they have reduced the number of wholesale accounts by roughly 50 percent in North America. We’ve all seen the news of stores losing their Nike accounts and products being withheld, so this wasn’t surprising news to hear.
The big news last week was Nike’s acquisition of RTFKT (pronounced Artifact) for an undisclosed amount. Nike CEO says the acquisition “allows us to extend this reach to serve and delight consumers and creators in both the physical and virtual worlds.” It’s still too early to tell what this will mean for the sneaker industry as a whole but we did speculate on what’s to come in the latest SoleSavy podcast.
Nike shares rose more than 3% in extended trading. You can read the full report from the earnings call on Nike.com.