•
Feb 28, 2021

Nike Q3 2021 Earnings Report

Nike's third quarter results for fiscal year 2021 were reported, revealing revenue growth driven by Greater China and digital sales, but impacted by supply chain challenges in North America.

Key Takeaways

NIKE, Inc. reported a 3% increase in revenue to $10.4 billion, with Greater China leading the growth. Digital sales surged, but North America faced declines due to supply chain disruptions. Gross margin improved, and diluted earnings per share rose to $0.90.

NIKE's third quarter revenue increased by 3% to $10.4 billion, but decreased 1% on a currency-neutral basis.

NIKE Direct sales increased 20%, while NIKE Brand digital sales increased 59%.

North America revenue declined 10% due to supply chain challenges.

Gross margin increased 130 basis points to 45.6%.

Total Revenue
$10.4B
Previous year: $10.1B
+2.5%
EPS
$0.9
Previous year: $0.78
+15.4%
Gross Margin
45.6%
Previous year: 44.3%
+2.9%
Demand Creation Expense
$711M
Previous year: $870M
-18.3%
Operating Overhead Expense
$2.33B
Previous year: $2.41B
-3.4%
Gross Profit
$4.72B
Previous year: $4.47B
+5.5%
Cash and Equivalents
$8.52B
Previous year: $2.86B
+197.5%
Free Cash Flow
$1.11B
Previous year: $905M
+23.0%
Total Assets
$36.2B
Previous year: $26.2B
+38.0%

Nike

Nike

Nike Revenue by Segment

Nike Revenue by Geographic Location

Forward Guidance

NIKE anticipates continued growth and strategic execution, but faces risks and uncertainties that could affect future results.

Positive Outlook

  • Accelerating innovation.
  • Creating a seamless, premium marketplace.
  • Strong brand momentum.
  • Driving focused growth.
  • Value of a more direct, digitally-enabled strategy.

Challenges Ahead

  • Disruption related to the COVID-19 pandemic.
  • Global container shortages.
  • U.S. port congestion.
  • Mandatory COVID-19 related store closures.
  • Risks and uncertainties that could cause actual results to differ materially.

Revenue & Expenses

Visualization of income flow from segment revenue to net income