Nike Q2 revenue increases 17%
Nike, Inc. has reported a 17% increase in revenue to £10.9 billion ($13.3 billion) for the second quarter ending 30 November 2022.
The group's revenue for EMEA increased 11% to £2.8 billion ($3.4 billion), with footwear up 14%, apparel up 7% and equipment up 26%.
Nike brand revenue increased 18% to £10.4 billion ($12.7 billion), with growth across all geographies and channels.
Converse brand revenue increased 5% to £483 million ($586 million), led by double-digit growth in North America, partially offset by declines in Asia.
Gross profit rose 10% to £4.6 billion ($5.7 billion), but gross margin decreased 300 basis points to 42.9%.
The decrease was due higher markdowns to liquidate inventory, continued unfavorable changes in net foreign currency exchange rates, elevated freight and logistics costs and increased product input costs, partially offset by strategic pricing actions.
The group's net income totalled £1 billion ($1.3 billion), flat compared to prior year.
John Donahoe, President and CEO of Nike, said: "Nike's results this quarter are a testament to our deep connection with consumers. Our growth was broad-based and was driven by our expanding digital leadership and brand strength. These results give us confidence in delivering the year as our competitive advantages continue to fuel our momentum."
Matthew Friend, EVP and CFO for Nike, said: "Consumer demand for Nike's portfolio of brands continues to drive strong business momentum in a dynamic environment. We remain focused on what we can control, and we are on track to deliver on our operational and financial goals — setting the foundation for sustainable, profitable growth."