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May 31, 2022

Nike Q4 2022 Earnings Report

Nike's Q4 2022 results reflected a slight revenue decrease and a decrease in gross margin, but were driven by growth in NIKE Direct and EMEA.

Key Takeaways

NIKE, Inc. reported a slight decrease in Q4 revenue, with growth in NIKE Direct offset by wholesale declines. Gross margin decreased due to higher inventory obsolescence reserves in Greater China and elevated freight and logistics costs. Diluted earnings per share was $0.90, down 3 percent compared to prior year.

Fourth quarter revenues were $12.2 billion, down 1 percent compared to prior year and up 3 percent on a currency-neutral basis.

NIKE Direct revenues for the fourth quarter were $4.8 billion, up 7 percent compared to prior year and up 11 percent on a currency-neutral basis.

Gross margin for the fourth quarter decreased 80 basis points to 45 percent.

Diluted earnings per share was $0.90 for the fourth quarter.

Total Revenue
$12.2B
Previous year: $12.3B
-0.5%
EPS
$0.9
Previous year: $0.93
-3.2%
Gross Margin
45%
Previous year: 45.8%
-1.7%
Demand Creation Expense
$1.06B
Previous year: $997M
+6.4%
Operating Overhead Expense
$2.97B
Previous year: $2.75B
+8.3%
Gross Profit
$5.5B
Previous year: $5.66B
-2.7%
Cash and Equivalents
$8.57B
Previous year: $9.89B
-13.3%
Free Cash Flow
$909M
Previous year: $1.84B
-50.5%
Total Assets
$40.3B
Previous year: $37.7B
+6.8%

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Nike Revenue by Segment

Nike Revenue by Geographic Location

Forward Guidance

The marked paragraphs contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially.

Revenue & Expenses

Visualization of income flow from segment revenue to net income