American firm Nike's revenue rises 5% to $46.7 billion in FY22

Gross margin has increased 120 basis points to 46 per cent in fiscal 2022, primarily due to margin expansion in the Nike Direct business, a higher mix of full-price sales and favourable changes in net foreign currency exchange rates, including hedges, partially offset by elevated freight and logistics costs and higher inventory obsolescence reserves in Greater China in the fourth quarter, the company said in a media release.

“Nike’s results this fiscal year are a testament to the unmatched strength of our brands and our deep connection with consumers," said John Donahoe, president and CEO, Nike, Inc. “Our competitive advantages, including our pipeline of innovative products and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport."

In the fourth quarter, Nike Direct revenue grew 7 per cent on a reported basis and 11 per cent on a currency-neutral basis, led by 25 per cent growth in EMEA, 43 per cent growth in APLA and 5 per cent growth in North America, partially offset by a decline in Greater China. Nike Brand Digital grew 15 per cent on a reported basis and 18 per cent on a currency-neutral basis, driven by double digit growth in APLA, North America and EMEA. Nike-owned stores declined 2 per cent on a reported basis and increased 1 per cent on a currency-neutral basis.

“In this dynamic environment, Nike's unrivaled strengths continue to fuel our momentum,” said Matt Friend, executive vice president and chief financial officer, Nike, Inc. "Two years into executing our consumer direct acceleration, we are better positioned than ever to drive long-term growth while serving consumers directly at scale."

Fibre2Fashion News Desk (RR)