Nike (NKE) profit Q4 2022 profit

Nike surpassed Wall Street’s earnings and sales expectations for its fiscal fourth quarter on Monday as the sneaker giant overcame a Covid lockdown in China and a tougher climate for US consumers.

Shares were up less than 1% in aftermarket trading.

However, the company did not share a forecast for the coming year. It referred to some ongoing challenges, such as disruptions that have delayed the shipment of shoes and clothing around the world.

Here’s how Nike fared in the fiscal fourth quarter compared to what Wall Street expected, based on an analyst survey by Refinitiv:

  • Profit per share: 90 cents vs. 81 cents expected
  • Revenue: $12.23 billion vs. $12.06 billion expected

The company reported net income for the three-month period ended May 31 of $1.44 billion, or 90 cents per share, compared to $1.51 billion, or 93 cents per share, a year earlier.

Revenue fell to $12.23 billion, from $12.34 billion a year earlier.

In North America, Nike’s largest market, total sales fell 5% to $5.11 billion.

In Greater China, sales took a bigger hit due to lockdowns. Total sales in the country fell 19% to $1.56 billion from $1.93 in the same period a year ago.

The sportswear and sneaker company will face a number of significant challenges in the coming quarters. As the prices of gas, groceries, and more soar, some consumers may skip or swap discretionary items for cheaper brands. Supply chain challenges persist, causing goods to move slowly around the world or get stuck in the wrong place.

Over the three-month period, inventory rose to $8.4 billion — a 23% increase from the same period a year ago — thanks to longer lead times due to ongoing supply chain disruptions.

Shares of Nike closed at $110.50 Monday, down 2.13%. At the end of Monday, shares of Nike are down about 34% so far this year. It underperformed the S&P 500, which is down about 18% over the same period. The company’s market value is $173.9 billion.

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