Nike Beat Third Quarter Sales and Earnings Predictions
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posted their financial results for Q3 yesterday, revealing that they had actually seen revenues grow ahead of expectations. The sportswear giant reported revenues of $12.4 billion, ahead of the $12.28 billion figure that industry analysts predicted. The reveal comes after another round of streamlining measures, which recently saw the brand around 2 per cent of its workforce in an effort to save up to $2 billion of costs over the next few years.
Over the quarter, Nike Direct revenues saw a slight increase to $5.4 billion across channels. Nike Brand Digital sales experienced a 3 per cent decline in reported figures and a 4 per cent decrease in currency-neutral terms. Wholesale revenues showed a 3 per cent rise, totalling $6.6 billion.
The Swoosh have faced criticism over the past year due to its ‘lack of innovation’. As the brand looks to reinvigorate itself, this remains a key area of focus for the year ahead. Nike are also looking to increase their efforts in the sports sector, strengthen their brand marketing and deepen their investment in wholesale – a contrast to the D2C initiative they rolled out in 2020.
In a statement, Nike's President and CEO John Donahoe said, 'We are making the necessary adjustments to drive Nike’s next chapter of growth. We’re encouraged by the progress we’ve seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace'.
The Swoosh are yet to offer an update on their full-year outlook.