Yesterday, NIKE shares closed the trading session at $103.21, or 0.16% up. After hours, NIKE shares added another 12.77% to reach $116.39. With a market cap of $161.481 billion, NIKE stock is still 38.08% down year-to-date.
American sportswear company Nike Inc (NYSE: NKE) struck the Q2 fiscal 2023 balance with great earnings, blowing Wall Street expectations away. Analysts believe that better-than-expected performance came as a result of inventory level growth that has been inflated for several months because of supply chain disruptions. Following the company’s announcement, NKE stock went up.
Nike’s Q2 Earnings Overview
Yesterday, Nike shares closed the trading session at $103.21, or 0.16% up. After hours, NKE shares added another 12.77% to reach $116.39. With a market cap of $161.481 billion, Nike stock is still 38.08% down year-to-date.
The numbers for the fiscal 2023 second quarter reported by Nike are as follows:
- The revenue reported for the quarter totaled $13.3 billion. Meanwhile, analysts predicted $12.57 billion. The revenue is as much as 17% up compared to last year and 27% up on a currency-neutral basis.
- The net income for the quarter made up $1.33 billion, or 85 cents per share. The expected number was 64 cents per share. Last year, it was $1.34 billion and 83 cents per share.
- NIKE Direct sales grew by 25%, led by 34% growth in NIKE Digital sales and 11% growth in NIKE stores.
- Inventories were $9.3 billion, or 43% higher compared to the prior year period, driven by an increase in units from lapping prior year supply chain disruption, as well as higher input costs.
Nike President and CEO John Donahoe commented:
“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.”
Executive Vice President and Chief Financial Officer Matthew Friend added:
“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.”
For the full fiscal 2023, the company’s leaders are expecting the revenue to grow ‘low teens on a currency-neutral basis.’ According to Matthew Friend, Q3 revenue growth is likely to be higher than Q4 due to the timing of wholesale shipments.
Nike’s Latest Initiatives
Currently, the company is focused on expanding its portfolio. Last week, Nike announced the opening of its “Jordan World of Flight” store on Via Torino, Milan. The store is a 363-square-meter premium retail destination that carries Jordan Brand footwear and apparel for men, women, and kids. According to Nike, World of Flight Milan is the “future of Jordan retail.”
In addition, Nike recorded enormous success on the web 3.0 interface. In particular, it developed its own web 3.0 wearables platform called .Swoosh (pronounced “dot Swoosh”). Besides, it collaborated with a digital collectibles firm RTFKT to unveil its web 3.0 sneakers. As we have reported, the Cryptokicks iRL sneakers feature auto-lacing, enhanced lighting, haptic feedback, gesture control, walk detection, app connectivity, AI/ML algorithms, and wireless charging via the RTFKT power deck.
Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.
