Despite being am ore than a year in a global pandemic which has lead to many stores temporally shutting down and likely re-shaped shopping habits at retail for good, Nike has clearly found its way back to connecting with consumers. The brand delivered its largest revenue total ever in a quarter on Friday — led by its e-commerce division and full-price sales in North America. Donahue said the Nike brand is only getting stronger — driven by digital growth, its women’s business, apparel, the Jordan brand and international — and that long-term prospects are more sustainable than ever before.
“Our team has proven their ability to be unrelenting and executing against the macro complexities, while also building the future,” said John Donahue, president and CEO, on a conference call with analysts and investors.
The company showed strong growth despite recent problems in China. In fact, there was no mention of boycott in China, and it is clear that this recent incident had no material impact on Nike’s business in the country.
“After a strong March, our business in Greater China was impacted in April, and we adjusted our operations by suspending marketing activities and product launches. We then began to see a recovery trend, improving to a single-digit decline in May and sequentially improving into June, with month-to-date retail sales trends approaching prior year levels.” Friend said. “We continue to invest in serving consumers with the best products Nike has to offer in locally relevant ways.”
For fiscal 2022, Nike forecast revenue growth in the low double digits and plans for revenue to surpass $50 billion, “reflecting strong consumer demand across our operating segments as we lead with digital, scale Nike owned physical retail concepts and grow with our strategic partners,” said Matthew Friend, EVP and CFO of Nike, on the call with analysts.
Said Poser: “The ability to overcome weakness in China, Nike’s fastest growing market, highlights, in our view, Nike’s best in class global consumer engagement and its pipeline of compelling innovative product across merchandise categories.”
It is obvious that demand for Nike’s products is very strong while the company managed to use the opportunities presented by the pandemic to accelerate its digital transformation, which had a positive effect on margins. “Our strengths and proven playbook give us the confidence to move even faster to invest at even a more accelerated pace against the opportunities we see ahead,” Donahue said.