If there was any doubt that a global pandemic would fault the Swoosh, there should be none now.
Nike’s financial performance has remained elevated throughout the pandemic, wavering its worst segments through a bolstering of their direct-to-consumer offerings. As their retail stores open to the public again, the sportswear giant has continued their momentum, reporting strong financial results for Q4 and FY21 (full year).
Among these results, the most significant take-aways as reported by Nike were as follows:
- Revenues for the NIKE Brand were $42.3 billion, up 17 percent from FY19 on a currency-neutral basis, driven by growth across NIKE Direct and wholesale, double-digit growth across footwear and apparel, with growth led by Sportswear and the Jordan Brand.
- Fourth quarter reported revenues were $12.3 billion, up 96 percent compared to prior year and increasing 21 percent compared to the fourth quarter of 2019.
- Full year reported revenues increased 19 percent to $44.5 billion from FY19.
- NIKE Direct fourth quarter sales increased 73 percent to $4.5 billion.
- Gross margin for the fourth quarter increased 850 basis points to 45.8 percent.
- Diluted earnings per share for the fourth quarter was $0.93 and for the full year was $3.56.
Other prominent findings include Nike’s increased presence in Greater China. The company reported another year of double digit, currency neutral growth in the area for its seventh year straight. Their growing audience in areas like Asia and geographies across the globe have resulted in Nike’s increased revenues.
Additionally, Nike’s subsidiary brand Converse has continued its long legacy within Western Europe and the Americas. Converse’s revenues were up $596M, up 85% compared from FY19.
“NIKE’s strong results this quarter and full fiscal year demonstrate NIKE’s unique competitive advantage and deep connection with consumers all over the world,” said John Donahoe, President & CEO, NIKE, Inc. “FY21 was a pivotal year for NIKE as we brought our Consumer Direct Acceleration strategy to life across the marketplace. Fueled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for NIKE’s long-term growth.”
John Donahoe, CEO of Nike. Inc
Heading into 2022, Nike will look to continue building the e-commerce offerings while strengthening their consumer ties across the globe. Read more about Nike’s financial performance here.
