- Nike‘s 3Q revenue has met expectations, amounting to $12.43 billion, which is a 0.3% increase year on year.
- North America’s revenue is $5.07 billion, a 3.2% increase from the previous year, surpassing the estimate of $4.82 billion.
- EMEA (Europe, Middle East, and Africa) revenue stands at $3.14 billion, a 3.3% decrease year on year, slightly below the estimate of $3.18 billion.
- Greater China has a revenue of $2.08 billion, a 4.5% increase year on year, slightly above the estimate of $2.04 billion.
- Asia Pacific & Latin America revenue is $1.65 billion, a 2.9% increase from the previous year, slightly below the estimate of $1.68 billion.
- Global Brands revenue has decreased by 25% year on year, amounting to $9 million, significantly below the estimate of $12.5 million.
- Converse revenue is $495 million, a 19% decrease year on year, below the estimate of $579.3 million.
- Footwear revenue stands at $8.16 billion, a 2.4% increase year on year, above the estimate of $7.93 billion.
- Apparel revenue is $3.29 billion, a 2.7% decrease year on year, slightly below the estimate of $3.36 billion.
- Equipment revenue is $487 million, a 21% increase year on year, above the estimate of $414.8 million.
- Gross margin stands at 44.8%, a 1.5% increase from the previous year, slightly below the estimate of 45.1%.
- Inventory is valued at $7.73 billion, a 13% decrease year on year, below the estimate of $8.16 billion.
- Nike‘s cash and cash equivalents stand at $8.96 billion, a 29% increase year on year, above the estimate of $7.82 billion.
Nike on Smartkarma
According to Baptista Research on Smartkarma, NIKE, Inc. has been making impressive strides in their strategy for global dominance. Their recent financial results surpassed expectations, with a 1% growth in revenue compared to the previous year. This growth was driven by strong performance in both their digital and brick-and-mortar stores, especially in Greater China. Despite a highly promotional market, NIKE, Inc. managed to expand their gross margins and increase earnings per share and free cash flow.
In another report by Baptista Research on Smartkarma, it was noted that NIKE, Inc. has been successful in their direct-to-consumer marketplace model and new innovations. Despite facing challenges such as societal, geopolitical, and global health issues, as well as supply chain disruptions, the company has managed to achieve decent growth. In fact, their revenues have increased from $39 billion in fiscal 2019 to over $50 billion, surpassing the overall industry growth rate.
A look at Nike Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, the long-term outlook for Nike looks promising. With a score of 4 for Growth, it indicates that the company is expected to experience strong growth in the future. This can be attributed to its wide range of products, including athletic footwear, apparel, equipment, and accessories for all genders and age groups. Additionally, Nike has a score of 3 for Resilience, suggesting that it has the ability to withstand economic downturns and maintain its performance.
Furthermore, Nike also scores well in terms of Momentum, with a score of 3. This indicates that the company has been performing well in recent times and is expected to continue its positive momentum in the future. However, it is important to note that Nike has a score of 2 for both Value and Dividend, suggesting that it may not be the most undervalued stock in the market, and may not provide high dividends to its shareholders.
In summary, Nike is a well-established company that designs, develops, and sells athletic products globally. With strong scores in Growth, Resilience, and Momentum, the company is expected to continue its success in the long-term. However, investors should also consider the company’s lower scores in Value and Dividend before making any investment decisions.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
