Nike’s Q4 2022 Results Confirm Continued Direct Strategy Success
Nike have released their Q4 2022 financial results overnight and, as always, there are some interesting numbers to look at, even for the layman sneakerhead. Like their previous quarter, the Swoosh have demonstrated continued growth in their Nike Direct model, tallying $4.8 billion of their total $12.2 billion revenue for Q4.
The direct figures are seven per cent higher compared to this time last year, reflecting yet another quarter of growth since Nike began focusing on ‘Consumer Direct Acceleration’ about two years ago. Wholesale revenue was still higher at $6.8 billion for the quarter, but it’s notable how quickly the direct model is growing.
‘Two years into executing our Consumer Direct Acceleration, we are better positioned than ever to drive long-term growth while serving consumers directly at scale,’ said executive VP and CFO, Matt Friend.
Of the $12.2 million revenue, $593 million is attributed to Converse, who Nike have owned since July 2003. The brand noted that some outlying events from this last quarter – namely the ‘deconsolidation of our Russian operations’ plus changing their distribution model in Argentina, Chile and Uruguay – resulted in $150 million of income changes.
‘Nike’s results this fiscal year are a testament to the unmatched strength of our brands and our deep connection with consumers,’ said president and CEO, John Donahoe. ‘Our competitive advantages, including our pipeline of innovative product and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport.’
The full report is available from Nike.