US apparel firm Nike's FY21 sales rises 19% to $44.5 bn

26 Jun '21

2 min read

Pic: Shutterstock

Nike, a US-based designer of authentic athletic footwear, apparel and accessories, reported 19 per cent revenues growth to $44.5 billion in its fiscal 2021 ended on May 31, 2021, compared to the revenues of $37.4 billion in the previous fiscal. The company’s net income for the quarter escalated 126 per cent to $5.7 billion (FY20: $2.5 million).

“Nike’s strong results full fiscal year demonstrate Nike’s unique competitive advantage and deep connection with consumers all over the world,” John Donahoe, president and CEO at Nike, said in a press release. “FY21 was a pivotal year for Nike as we brought our consumer direct acceleration strategy to life across the marketplace. Fuelled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for Nike’s long-term growth.”

Gross profit for FY21 grew 23 per cent to $19.9 billion ($16.2 billion), while selling and administrative expenses were $13.0 million ($13.1 billion).

Revenues from Nike brand during the year surged 19 per cent to $42.3 billion ($35.6 billion), whereas Converse brand revenues grew 19 per cent to $2.2 billion ($1.8 million). Nike brand’s digital sales jumped 59 per cent during the reported period.

North America regions recorded revenues rise of 19 per cent to $17.2 billion ($14.5 billion), while Europe, Middle East and Africa’s revenues were up 23 per cent to $11.4 billion ($9.3 billion). Moreover, revenues from Asia Pacific & Latin America's grew 6 per cent in FY21 to $5.3 billion ($5.0 billion), and revenues in Greater China were up 24 per cent to $8.3 billion ($6.6 billion).

“Nike’s brand momentum is a testament to our authentic consumer connections, digital strength and continued operational execution,” Matt Friend, executive vice president and chief financial officer at Nike said. “As we advance our consumer-led digital transformation, we are building a new financial model that will continue to fuel long-term sustainable, profitable growth for Nike.”

Fibre2Fashion News Desk (JL)

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