BEAVERTON, Oregon, March 18, 2021 – NIKE, Inc. (NYSE: NKE) today reported fiscal 2021 financial results for its third quarter ended February 28, 2021.
- Reported third-quarter revenue was $ 10.4 billion, up 3 percent year-on-year and 1 percent down in currency neutral terms * led by Greater China reported revenue growth of 51 percent. hundred.
- NIKE direct sales were $ 4 billion, an increase of 20 percent on a reported basis and an increase of 16 percent on a neutral currency basis.
- NIKE brand digital sales increased 59 percent, or 54 percent on a currency-neutral basis, with strong double-digit increases across all geographies.
- North America reported that revenue declined 10 percent due to supply chain challenges, including global container shortages and congestion at US ports, affecting inventory flow and timing. of wholesale shipments.
- Gross margin increased 130 basis points to 45.6 percent.
- Diluted earnings per share for the quarter were $ 0.90.
“NIKE continues to connect deeply with consumers around the world driven by our strong competitive advantages,” said John Donahoe, president and CEO of NIKE, Inc. “Our strategy is working as we accelerate innovation and create the impeccable premium market of the future. I have never had more confidence in our leadership and our teams to operate with agility in a dynamic environment. ” **
Our third quarter revenue performance was impacted by the COVID-19 pandemic-related disruption, particularly in North America and EMEA. North American revenue declined 11 percent on a currency-neutral basis, largely driven by global container shortages and US port congestion, slowing inventory flow in the third quarter in more than three weeks, affecting bulk shipping timing and partially offsetting NIKE direct growth of 15 percent. EMEA physical retail sales declined as 45 percent of NIKE-owned stores experienced mandatory COVID-19 related closures during the last two months of the quarter, however this was partially offset by digital sales, which increased 60 percent. Currently, approximately 65 percent of stores in EMEA are open or reduced hours. Greater China revenue increased 42 percent on a currency-neutral basis, reflecting strong double-digit growth compared to the third quarter of fiscal 2019 as we annualize the impact of COVID-19, as well as a continued strong digital sales growth of 44 percent compared to prior year.
“The momentum of the NIKE brand is as strong as ever and we are driving focused growth against our greatest opportunities,” said Matt Friend, executive vice president and chief financial officer of NIKE, Inc. “We continue to see the value of a more digital strategy. direct – strategy enabled, fueling even greater potential for NIKE in the long term. ”**