Nike revenues remain flat due to supply chain disruption

Nike has reported revenues of $11.4 billion for the second quarter ended 30 November, up 1 per cent compared to last year and flat on a currency-neutral basis.

The sports fashion brand said that revenues remained flat while the company continues to manage the ongoing impact of supply chain challenges across the marketplace.

It added that revenues in Greater China and Asia Pacific and Latin America (APLA) was largely due to lower levels of available inventory resulting from Covid-19 related factory closures.

"Our second quarter results reflect our deep consumer connections, the continued strength of our brands and strong marketplace demand," said Matt Friend, executive vice president and chief financial officer, NIKE. "As we navigate through short-term supply challenges, we are focused on executing our Consumer Direct Acceleration strategy to fuel our long-term financial outlook."

NIKE did experience growth in North America and EMEA as a result of higher levels of in-transit inventory entering the second quarter.

NIKE Direct sales were $4.7 billion, up nine per cent on a reported basis and up eight per cent on a currency-neutral basis.

NIKE Brand Digital sales increased 12 per cent, or 11 per cent on a currency-neutral basis, led by 40 per cent growth in North America.

"NIKE's strong results this quarter provide further proof that our strategy is working, as we execute through a dynamic environment," said John Donahoe, president and chief executive, NIKE. "We are now in a much stronger competitive position today than we were 18 months ago.

“And I want to thank our roughly 75,000 global teammates for all their work to provide consumers with the compelling new product, innovation and experiences that only NIKE can deliver."

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