Nike’s positioning as the world’s most beloved sneaker and apparel brand continues to be displayed through their earnings reports. For their first quarter results of the fiscal year 2022, the Beaverton sportswear firm reported strong results for revenue, gross margin, earnings per share, and other financial metrics.
For 1Q22, the Swoosh’s emphasis on digital channels, direct to consumer business model, and adaptability to the macroeconomic environment have spurred an increase in revenues of 16%, up to $12.2 billion. Of that, Nike Direct — the company’s direct to consumer selling strategy — consisted of $4.7 billion. Additionally, Nike’s gross margin has also increased 170 basis points, or 46.5%, in-line with the firm’s increased top-line.
Nike also reported increased returns for their shareholders, continuing on the firm’s promise to deliver growing value. For 1Q22, they paid $435 million in dividends, up 13% from the prior year. This has made it the 19th consecutive year that dividend payouts have increased on a year over year basis.
We don’t expect Nike’s growth to slow-down anytime soon, particularly with their new distribution strategy and brand equity. Read more about Nike’s earnings summary here.
