Quarterly figures: Sporting goods giant Nike increases sales sharply

Business at Nike, the world's largest sporting goods manufacturer, is going well despite global inflation and recession concerns.

Quarterly figures: Sporting goods giant Nike increases sales sharply

Business at Nike, the world's largest sporting goods manufacturer, is going well despite global inflation and recession concerns. Sales increased significantly in the second fiscal quarter. On the other hand, profitability was weighed down by rebates as the group has a lot of goods in stock. Nevertheless, Nike exceeded the expectations of the experts with the figures presented on Tuesday evening. The stock rose 13 percent in after-hours trading. The move also boosted shares in rivals Adidas and Puma.

In the three months ended November, Nike's revenue increased 17 percent year-on-year to $13.3 billion. With the exception of China, sales in all regions significantly exceeded expectations.

Inflation and the general reticence of customers do not leave Nike untouched. Inventories increased by 43 percent. The group is now sitting on unsold goods worth $9.3 billion. The management also justified the increase with exceptionally low stocks in the previous year. At that time, corona restrictions in the important production location Vietnam and long transport times caused disruptions in retail worldwide.

Momentum at the beginning of the Christmas business

Net income stagnated at around $1.3 billion, but also significantly exceeded market expectations. Things continued to be difficult for Nike in China, where the government's zero-Covid policy slowed down business.

Overall, the momentum continued at the beginning of the Christmas business, according to the information. Thus, sales in the first weeks of December developed strongly - despite a market characterized by price reductions, said CFO Matt Friend. For the 2022/23 financial year, the Group expects a currency-adjusted increase in sales of 13 to 15 percent.

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