Nike Report Continued Growth for Q3 2022 Thanks to Consumer Direct Strategy
Nike have released their fiscal results for Q3 2022, which ended on February 28. They reported continued revenue growth in the billions, thanks largely to a continued shift in sales strategy that prioritises direct and brand digital sales.
Revenue increased by $10.9 billion compared to the same quarter last financial year, with a large chunk of that attributed to Nike direct sales, which were $4.6 billion for the period. Similarly, brand digital sales increased by 19 per cent globally, with the North America region’s consumption growing by 33 per cent. This success also required some investment on Nike’s part, as ‘demand creation expense’ cost $854 million, a 20 per cent increase due to more brand campaigns and digital marketing to support their online strategy.
And while the Swoosh don’t directly attribute specific actions to their performance this quarter, Foot Locker’s Q4 results and their expectation of fewer Nike products in their assortment suggests more money going directly to the brand as they sell directly.
‘Nike’s strong results this quarter show that our Consumer Direct Acceleration strategy is working, as we invest to achieve our growth opportunities,’ said Nike president and CEO John Donahoe. ‘Fuelled by deep consumer connections, compelling product innovation and an expanding digital advantage, we have the right playbook to navigate volatility and create value through our relentless drive to serve the future of sport.’
View Nike's Q3 2022 results in full here.