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Huge Q3 earnings beat for Nike

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Miguel A. Rodriguez
Miguel A. Rodriguez
24 March 2022
The athletic footwear and apparel major reported better-than-expected fiscal Q3 2022 results

For the quarter ending February 28, Nike's revenue came in 5% higher year-over-year, at $10.9 billion, surpassing the $10.59 billion estimates. NIKE brand revenues accounted for 94.5% of the company's total quarterly revenues. According to CFO Matthew Friend, Nike's revenue growth would have been more significant during the holiday period if the company had enough merchandise on hand to meet customer demand. But now, all Nike factories in Vietnam are operational, following pandemic-driven shutdowns.

At the same time, Nike's earnings declined 3.3% from the previous year, coming in at $0.87 per share. However, the figures were higher than the $0.71 per share initially forecasted.

Moreover, Nike paid dividends of $484 million in the quarter, up 12% year-over-year, while its share repurchase program was at $1.2 billion.

In the quarter, Nike said the North American sales climbed 9%, while sales in mainland China fell 5% from the prior year. The Chinese market is still recovering after customers boycotted the Western brands last year.

For the ongoing fiscal quarter, Nike reaffirmed its expectations for sales growth of mind-single-digits from the prior twelve months period. According to data from Refinitiv, analysts are looking for revenue to be up 5.3%.

 At the moment of writing, Nike's share price was trading 5.23% higher.

Sources: cnbc.com, finance.yahoo.com, tipranks.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.