Nike posts marginal rise in Q3 sales
19 Mar 2021
For its third quarter, Nike reported revenues of 10.4 billion dollars, up 3 percent compared to the prior year and down 1 percent on a currency-neutral basis led by Greater China reporting revenue growth of 51 percent.
Gross margin for the quarter increased 130 basis points to 45.6 percent and net income was 1.4 billion dollars, up 71 percent. Diluted earnings per share were 90 cents, increasing 70 percent.
“Nike continues to deeply connect with consumers all over the world driven by our strong competitive advantages,” said John Donahoe, Nike’s president & CEO, in a statement, adding: “Our strategy is working, as we accelerate innovation and create the seamless, premium marketplace of the future.”
Strong digital growth
Nike's direct sales were 4 billion dollars, up 20 percent on a reported basis, and 16 percent on a currency-neutral basis. Nike brand digital sales increased 59 percent or 54 percent on a currency-neutral basis, with strong double-digit increases in all geographies.
North America sales declined 10 percent due to supply chain challenges, including global container shortages and U.S. port congestion, impacting the flow of inventory and timing of wholesale shipments.
Revenues for the Nike brand were 9.8 billion dollars, a decrease of 2 percent to prior year on a currency-neutral basis, primarily due to declines in wholesale business caused by timing of shipments due to global container shortages and port congestion delays in the U.S. and mandatory store closures in Europe, which were partially offset by double-digit growth in Nike brand digital and the Jordan brand.
Revenues for Converse were 570 million dollars, up 8 percent on a currency-neutral basis, led by strong digital performance in North America and Europe.