The Strategist

Nike reports decline in net profit

03/22/2023 - 10:05

Nike, a U.S. manufacturer of sports apparel, decreased net profit on an annualized basis by 12% to $4.039 billion during the first three quarters of its fiscal year 2022–2023, which ended on February 28.

bargainmoose via flickr
bargainmoose via flickr
For the quarter, diluted earnings per share fell to $2.57 from $2.85 a year earlier. Revenue for the first nine months of the year grew by 11% to $38.392 billion.

Nike's fiscal third quarter net income of $1.24 billion was down 11% from the same period in 2017. Analysts expected $0.55 in diluted profits per share, but in fact they were $0.79, down from $0.87 in the prior year. The company's three-month sales grew by 14% year over year to $12.39 billion, beating analyst expectations ($11.47 billion).

In comparison to the previous quarter's estimate of 4-6%, the company now anticipates revenue growth of 7-9% for the current fiscal year. The business anticipates revenue increase of up to 3% in the fourth quarter. Additionally, Nike expects a decline in gross income for the fiscal year.