Nike has reported an increase in revenues in the fourth quarter and full year ending May 2023, driven by “investment in innovation and digital leadership” as well as the success of its “top strategic partners”.

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Nike brand sales grew 10% year on year

The global sportswear giant posted revenue of $51.2bn (£40.5bn) for the 12 months ending May 2023 – 10% higher than what it reported last year and 16% higher on a constant currency basis.

Nike brand sales grew 10% year on year and 16% on a constant currency basis to $48.8bn (£38.62bn), driven by double-digit growth across Nike Direct and Nike’s wholesale business.

In a conference call hosted yesterday, Nike chief executive John Donahoe told investors the business feels “very good” about the results driven by its “decisive actions” over the past year. 

Donahoe credited the continued sales momentum driven by its “top strategic partners”, including Dick’s Sporting Goods, JD Sports and Sports Direct.

Speaking of the successful partnership between Sports Direct and Nike, Frasers Group chief executive Michael Murray told Retail Week he was “honoured” to see Sports Direct mentioned for the first time.

Murray said: “Congratulations, Nike and John Donahoe, on another positive set of results. Amazing and honoured to see Sports Direct mentioned for the first time as one of their very few global strategic brand partners.

“This is a huge credit to our elevation strategy and a significant moment in the journey we’ve been on. Huge thanks to our Sports Direct team who made it happen, delivering the next phase of Sports Direct.”

Despite the growth in revenue, Nike reported a 43.5% decrease in gross margin, which was “primarily due to higher product input costs and elevated freight and logistics costs, higher markdowns and continued unfavourable changes in net foreign currency exchange rates”.

Donahoe said: “Nike’s strong results make clear that our strategy is working. FY23 was a milestone year for Nike as our unique advantages continue to drive competitive separation.

“Our investment in innovation and our digital leadership are fueling broad-based growth across our portfolio of brands as we create value by serving the future of sport.”

Nike executive vice-president and chief financial officer Matthew Friend added: “FY23 demonstrated the power of Nike’s portfolio to fuel strong growth, year after year.

“We finished the year with mid-teens, currency-neutral revenue growth and a healthy marketplace – setting the foundation for sustainable, profitable growth in FY24 and beyond.”

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