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Huge Q3 earnings beat for Nike

Huge Q3 earnings beat for Nike

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

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