US-based sports and lifestyle retailer NIKE has reported strong results for the quarter ending on 31 May, with revenues increasing by 96% to $12.3bn from a year earlier.
On a currency-neutral basis, the company’s revenue was up by 88% and increased by 21% compared to the fourth quarter of 2019.
This year, Nike’s revenues increased by 19% to $44.5bn, up by 17% on a currency-neutral basis. This growth was led by the company’s owned digital business.
For the quarter, Nike’s net income was $1.5bn and its diluted earnings per share (EPS) was $0.93. The company’s diluted EPS for the full year was $3.56.
During the quarter, Nike Direct sales increased by 73% to $4.5bn, while NIKE Brand revenue rose by 88% to $11.8bn from the previous year.
Nike Brand Digital delivered a 41% increase in revenue compared to the same period of the previous year, and a 147% increase from 2019 levels.
Nike president and CEO John Donahoe said: “Nike’s strong results for this quarter and the full year demonstrate our unique competitive advantage and deep connection with consumers all over the world.
“This year was a pivotal year for Nike as we brought our Consumer Direct Acceleration strategy to life across the marketplace.
“Fuelled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for our long-term growth.”
Nike said that its North America revenues were up by 141% on a reported basis for the fourth quarter, and its North America Digital revenues had increased by 54% compared to the prior year.
For the next year, Nike expects its revenue to grow by a ‘low double-digit percentage’, exceeding $50bn.
It also expects supply chain delays and higher logistics costs to continue throughout a significant portion of the year.
Last month, the company’s rival, Adidas, reported a 27% rise in currency-neutral revenues to €5.27bn in the first quarter of this year, compared to €4.4bn in the same quarter of last year.