Full year reported revenues increased 19 percent to $44.5 billion. NIKE Direct fourth quarter sales increased 73 percent to $4.5 billion. Gross margin for the fourth quarter increased 850 basis points to 45.8 percent. Diluted earnings per share for the fourth quarter was $0.93 and for the full year was $3.56.
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How is NIKE doing financially?
Revenues for NIKE, Inc. increased 5 percent to $10.9 billion compared to the prior year and were up 8 percent on a currency-neutral basis. Revenues for the NIKE Brand were $10.3 billion, up 8 percent compared to prior year on a currency-neutral basis, led by 13 percent growth in EMEA.
Is NIKE in a good financial position?
The Bottom Line. Nike is a sound stock based on its steady stock performance and growth in earnings per share, revenue and net income, strong balance sheet, and management approach. But there is no risk-free stock—not even Nike.
How is NIKE doing financially 2022?
Nike has revealed revenue of US$46.7 billion for the 2022 financial year, up five per cent year-over-year (YoY). The US sportswear giant’s net income for fiscal 2022 was US$6 billion, a rise of six per cent YoY. Broken down, revenue for the Nike brand was US$44.4 billion, up five per cent YoY.
Is NIKE currently profitable?
In fiscal 2022, Nike’s global gross profit amounted to about 21.5 billion U.S. dollars.
Nike’s gross profit worldwide from the fiscal years of 2014 to 2022 (in million U.S. dollars)
| Characteristic | Gross profit in million U.S. dollars |
|---|---|
| 2019 | 17,474 |
| 2018 | 15,956 |
| 2017 | 15,312 |
| 2016 | 14,971 |
How much does Nike contribute to the economy?
Accelerated Growth
Analysts estimate that Nike’s revenue will grow nearly 25% through the fiscal year 2021 to $45.4 billion, a compounded annual growth rate of almost 8%, as earnings rise 52%. Analysts now project Nike’s earnings will grow at a compounded annual rate of nearly 15% during that period.
Why is Nike so successful?
By offering more products to more people, in more markets than any other sports company, they are able to capture a far greater market share of the market than any other company. Like most leaders in the market, Nike values the consumer and the importance of providing a quality product.
What is Nike’s financial strength?
Nike has the Financial Strength Rank of 8.
Why is Nike a good investment?
The company has focused on protecting its margins which grew 190 basis points to 46.3% in the first nine months of 2022. This is largely a result of Nike increasing its revenue at a greater rate than its cost of sales.
What are Nike’s weaknesses?
Nike’s Weaknesses – Internal Strategic Factors
- Poor Labor Conditions in Foreign Countries – In the last 20 years, Nike has been consistently targeted regarding their poor labor conditions.
- Retailers Have a Stronger Hold – Nike’s retail sector makes Nike weak due to its sensitivity against pricing.
Can Nike cover its debt?
Long term debt can be defined as the sum of all long term debt fields. NIKE long term debt for the quarter ending May 31, 2022 was $8.920B, a 5.24% decline year-over-year.
Compare NKE With Other Stocks.
| NIKE Annual Long Term Debt (Millions of US $) | |
|---|---|
| 2020 | $9,406 |
| 2019 | $3,464 |
| 2018 | $3,468 |
| 2017 | $3,471 |
How is Nike doing compared to its competitors?
Comparing the results to its competitors, Nike Inc reported Total Revenue decrease in the 2 quarter 2022 year on year by -0.89 %, despite revenue increase by most of its competitors of 5.14 %, recorded in the same quarter. With net margin of 11.76 % company achieved higher profitability than its competitors.
How much profit does Nike make a year?
Amounts are in $ millions. 2021: Nike’s net revenues in 2021 grew to $44.54 billion (highest in the brand’s history) compared to $37.5 billion in 2020. The company experienced around 18.7% growth in its net revenues in 2021 compared to the previous year.
How does Nike make so much money?
Nike designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories. Nike’s business results and operations continue to be impacted by the pandemic and its effects on global supply chains. Most of Nike’s sales are generated by selling footwear to wholesale customers in North America.
What is Nike ranked in the world?
RANK83. Nike has been celebrating its 50th anniversary over the past year, and doing so in style: Its revenue grew 19% in 2021, while profits more than doubled.
Is Nike the biggest company in the world?
Nike, Inc., which is an American multinational corporation, is the world’s largest supplier and manufacturer of athletic shoes, apparel, and other sports equipment. Some of the other major players in this sector are Adidas, Puma, and Under Armour.
Is Nike economically sustainable?
Nike uses some eco-friendly materials, including organic and recycled cotton and polyester, and has water reduction initiatives in its supply chain. The brand has also set a deadline to eliminate hazardous chemicals by 2025 and the good news is that it is on track to meet its target.
How is Nike dealing with inflation?
With Nike revenue increasing by 8% year over year on a currency-neutral basis, it’s clear consumers are still shopping despite inflation. This rate of growth is not far off the pace from before the pandemic when Nike reported a currency-adjusted revenue increase of 11% in the comparable quarter of fiscal 2019.
What economic factors affect Nike?
Economic recession is the biggest threat Nike might face in the near future. The US and Asian economic recession can affect Nike since the company is manufacturing its products in Asia and the US. During the recession time labor and material cost also face an increase.
What is Nike’s competitive advantage?
Nikes competitive strategy seems to maintain competitive due to their low cost structure. They have an extremely low cost to create ratio compared to how much they are actually selling all of their products for. Additionally, they sell their products to such a large target audience.
How does Nike position itself in the market?
Nike have their positioning statement which is “For serious athletes, Nike gives confidence that provides the perfect shoe for every sport”, the customers who wanted to achieve the best for their exercise experience or wanted to be success in their sports career will be influenced to buy products from Nike.