The Strategist

Nike reports second biggest revenue growth in more than a decade

12/21/2022 - 09:33

Nike Inc reported its second-largest quarterly revenue increase in more than a decade, which easily outperformed analysts' earnings estimates, thanks to strong demand for sportswear and footwear in North America ahead of the holidays.

After the close of the regular trading session on Tuesday, shares in the world's largest sportswear manufacturer were up 13%.

During the quarter, the company used major discounts and promotions to reduce excess inventory, which helped it attract recession-averse customers and boost sales. Increased demand for sportswear, which began with the pandemic, was also supported by more affluent customers.

Nike Chief Financial Officer Matthew Friend stated at a financial results conference that the company had made significant progress in clearing its inventory in the previous quarter. Products for the spring sales season, he claims, have arrived earlier and faster.