Nike forecasts low growth in 2023 amid drop in fourth quarter revenue

Nike has today reported financial results for its fiscal 2022 fourth quarter and full year ending 31 May 2022, revealing a 1% decrease in fourth quarter revenues to £9.9 billion ($12.2 billion).

Nike Direct reported revenues for the fourth quarter were £3.9 billion, up 7% compared to prior year and up 11% on a currency-neutral basis. Wholesale reported revenues for the fourth quarter were £5.5 billion, down 7% compared to prior year and down 3% on a currency-neutral basis.

Net income was £1.1 billion, down 5%, and diluted earnings per share was $0.90, down 3% compared to the year prior.

For fiscal year 2022, revenues for Nike increased 5% to £38 billion, up 6% on a currency-neutral basis.

Revenues for the Nike Brand were £36.1 billion, up 5% on a reported basis and 6% on a currency-neutral basis, driven by double-digit growth in Nike Direct, partially offset by slight declines in wholesale revenues.

Nike Direct revenues were £15.2 billion, up 14% on a reported basis and up 15% on a currency-neutral basis, led by Nike Brand digital growth of 18% and Nike-owned stores were up 10%.

Revenues for Converse were £1.8 billion, up 6% on a reported basis and up 7% on a currency-neutral basis, led by double-digit growth in its direct to consumer business, partially offset by lower wholesale revenues.

Looking ahead, the company forecasts fiscal 2023 revenues to grow by "low single digits" when compared to 2022 levels, due to the headwinds of a stronger US dollar, with profit margins falling as much as 50 basis points.

John Donahoe, President and CEO of Nike Inc. said: "Nike's results this fiscal year are a testament to the unmatched strength of our brands and our deep connection with consumers. Our competitive advantages, including our pipeline of innovative product and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport."