Quarterly revenues at Nike rise 14%, but margins take a tumble

Nike’s latest quarterly revenues rose 14 per cent to $5.8 billion, in what president and CEO Mark Parker described as “exceptional results in extraordinary times”.

“Our business is organised to drive growth across multiple brands, geographies and categories as we manage through the ever-changing macroeconomic landscape,” says Parker.

“We continue to deliver compelling innovation to athletes and consumers, and strong returns for our shareholders. The global appetite for sports has never been stronger.”

Revenues rose by one per cent in Central and Eastern Europe, five per cent in Western Europe, 22 per cent in North America and 21 per cent in China.

Forward orders scheduled for delivery between June-November also look healthy for Nike, totalling $10.3 billion – 15 per cent higher than orders for the same period last year.

However, the company’s gross margin fell from 47.4 per cent to 44.3 per cent, primarily driven by higher production costs.

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