December 27, 2022

Here’s a quick summary of Q2 2023 Nike (NKE) earnings. Top 10 insights summarized for you by AI.

  1. Nike reported $13.3 billion in revenues for the second quarter of fiscal 2023, representing a 17% increase compared to the prior year.
  2. Nike Direct sales were $5.4 billion, a 16% increase on a reported basis.
  3. Nike Brand Digital sales increased 25% on a reported basis.
  4. Wholesale revenues grew 19% on a reported basis.
  5. Gross margin decreased 300 basis points to 42.9%, primarily due to higher markdowns to liquidate inventory, unfavorable changes in foreign currency exchange rates, elevated freight and logistics costs, and increased product input costs.
  6. Selling and administrative expenses increased 10% to $4.1 billion.
  7. Net income was $1.3 billion, remaining flat compared to the prior year.
  8. Revenues for the Nike Brand were $12.7 billion, a 18% increase on a reported basis.
  9. Revenues for Converse were $586 million, a 5% increase on a reported basis.
  10. Inventories for Nike were $9.3 billion, a 43% increase compared to the prior year period, due to an increase in units and higher input costs. Cash and short-term investments were $10.6 billion, down approximately $4.5 billion from the prior year. Nike returned approximately $2.1 billion to shareholders, including dividends and share repurchases.

Link to the full earnings

About the author 

Eric Seto

Eric Seto is an investor with over 10 years of experience. He travelled around the world to help with auditing, accounting, purchase and sale of companies.

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