Nike’s third-quarter accounts were warmly received, with the US sportswear maker’s stock immediately soaring 5% at the bell on Monday night. A movement which is similar, however, to a “phew” of relief, while the title has still lost nearly 22% since the start of the year, much more than the 6% of the S&P 500 index.
In the three months ended Feb. 28, Nike generated $10.9 billion in revenue, up 5% year-on-year and above consensus expectations of $10.6 billion. The profit, he stood at 87 cents per share, against 71 cents anticipated but 90 cents a year earlier. Mainly due to the rise in freight and logistics costs, still at near-record levels, for example, between China and Los Angeles, and tripling over one year. Delivery times deteriorated further in the quarter, with shipping now taking more than six weeks longer from Asia than before the pandemic, said Matthew Friend, Head of Finance.
Other subjects of concern for the next few months, or even the next quarters, are persistent inflation and the war between Moscow and kyiv. Like many multinationals, the group has closed its sites (nearly 120) in Russia, while continuing, of course, to pay its employees. E-commerce sales with the country represent, for their part, less than 1% of consolidated turnover.
” We focus on what we can control »
As for inflation, Nike manages, for the moment, to pass it on to the selling prices, given an intact appeal for the brand and a strong demand, higher than the supply. This demand came in particular from North America, which remained its main market, which was one of the good surprises of the publication, according to analysts. The turnover there increased by 9% when the invoicing carried out in China, the third outlet after Europe, Middle East and Africa (EMEA), fell again by 5% over one year (2.16 billion dollars ). For the quarter as a whole, Nike’s digital sales grew 19% year-on-year, fueled in particular by strong growth of 33% in North America.
The sports equipment manufacturer considers itself in a position to make forecasts for the current quarter, but not for the next financial year given the weakened visibility of inflation, the conflict in Ukraine and the problems still perceptible in the supply chain. ‘supply : ” We focus on what we can control “, confessed Matthew Friend.
In the meantime, at the end of May, sales should increase in the mid-range of a double-digit increase (“ middle one single digit ”), i.e. around 5%. Reuters’ Refinitiv consensus is for a 5.3% rise, in line with management guidance.