Mar. 21, 2023 — NIKE, Inc. (NYSE:NKE) today reported fiscal 2023 financial results for its third quarter ended February 28, 2023.
Analyst Forecast
NIKE, Inc. (NYSE:NKE) reported fiscal Q3 earnings of $0.79 per diluted share, down from $0.87 a year earlier.
Analysts polled by Capital IQ forecast $0.54.
Revenue for the quarter ended Feb. 28 was $12.39 billion, up from $10.87 billion a year earlier.
Analysts polled by Capital IQ projected $11.48 billion.
Financian
Third quarter reported revenues were $12.4 billion, up 14 percent compared to the prior year.
NIKE Direct sales were $5.3 billion, up 17 percent on a reported basis
NIKE Brand Digital sales increased 20 percent on a reported basis,
Gross margin decreased 330 basis points to 43.3 percent, primarily due to higher markdowns to liquidate inventory;
Net income was $1.2 billion, down 11 percent compared to prior year, and Diluted earnings per share was $0.79, decreasing 9 percent.
Inventories for NIKE, Inc. were $8.9 billion, up 16 percent compared to the prior year period, primarily driven by higher product input costs and elevated freight costs.
Earnings Guidance
Share Repurchase
In the third quarter, NIKE returned approximately $2.0 billion to shareholders, including:
Dividends of $528 million, up 9 percent from the prior year.
Share repurchases of $1.5 billion, reflecting 12.9 million retired shares as part of the four-year, $18 billion program approved by the Board of Directors in June 2022. As of February 28, 2023, a total of 32.0 million shares have been repurchased under the program for a total of approximately $3.4 billion.
Cash Dividend
CEO
“NIKE’s strong results in the third quarter offer continued proof of the success of our Consumer Direct Acceleration strategy,” said John Donahoe, President and CEO, NIKE, Inc. “Fueled by compelling product innovation, deep relationships with consumers and a digital advantage that fuels brand momentum, our proven playbook allows us to navigate volatility as we create value and drive long-term growth.”
Matthew Friend, Executive Vice President and Chief Financial Officer, said, “NIKE’s brand distinction and strong execution continue to create separation in the marketplace. We have made tremendous progress on inventory as we position NIKE for sustainable and more profitable growth.”
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.’s earnings releases and other financial information are available on the Internet at http://investors.nike.com. Individuals can also visit http://about.nike.com/en/newsroom and follow @NIKE.