Nike fy22q3’s revenue was $10.871 billion, an increase of 8% and a decrease of 8% in Greater China
The revenue of Nike fy22q3 (2021 / 12 / 1-2022 / 2 / 28) was US $10.871 billion, about RMB 69.045 billion, with a year-on-year increase of 8% (the revenue growth here and below excludes the influence of exchange rate). By brand, Nike’s brand revenue was US $10.323 billion, about 65.564 billion yuan, a year-on-year increase of 8%; Converse’s revenue was $567 million, or about 3.601 billion yuan, an increase of 2% at the same time.
By region, the revenue of Nike brand Greater China was US $2.160 billion, about 13.719 billion yuan, a year-on-year decrease of 8%, still the lowest growth rate in all regions, but the decline narrowed month on month; Although the Spring Festival has a certain role in promoting income, and Nike’s full price sales in Greater China have improved month on month, it is still affected by the Xinjiang cotton incident, the untimely supply of products and the epidemic situation. Among them, the footwear revenue was US $1.554 billion, a decrease of 6% at the same time; Clothing category 548 million US dollars, with a decrease of 13%; Equipment was $58 million, an increase of 15% over the same period.
The revenue of North America was 3.882 billion US dollars, an increase of 9% at the same time; The revenue of EMEA (Europe, Middle East and Africa, the same below) was US $2.779 billion, an increase of 13% at the same time; APLA (Asia Pacific and Latin America, the same below) earned US $1.461 billion, an increase of 19% at the same time.
By product, the revenue of Nike brand footwear was US $6.66 billion, about 42.3 billion yuan, an increase of 5% at the same time; The income of clothing was 3.232 billion US dollars, about 20.527 billion yuan, an increase of 12% at the same time; Equipment amounted to $390 million, or about 2.477 billion yuan, an increase of 36%.
By channel, Nike’s direct channels increased by 17% and e-commerce channels by 22%, mainly due to the double-digit growth in North America, APLA and EMEA, of which North America increased by 33%; Directly operated physical stores increased by 14% at the same time, mainly because the passenger flow tends to be stable and normalized. Sales revenue in North America and China decreased by 1%.
Focusing on all channels in Greater China, Nike’s direct sales revenue decreased by 11%, including 19% for e-commerce and 5% for direct physical stores, mainly due to 1) the impact of the epidemic on offline passenger flow; 2) Product supply problems persist, resulting in delayed release of new products and affecting sales.
Fy22q3’s net profit was US $1.396 billion, about RMB 8.866 billion, a year-on-year decrease of 4%. EBIT in Greater China was US $784 million, or about RMB 4.979 billion, with a decrease of 19%, still the lowest growth rate in all regions.
Supply chain problems continue to affect commodity supply, and the scale of in transit inventory increases
At present, the company’s Vietnam plant has resumed operation and the output meets expectations, but the supply chain interruption still leads to a shortage of inventory supply and cannot meet the strong market demand. As of February 28, 2022, the company’s inventory scale was US $7.7 billion, an increase of 15% at the same time, mainly due to the growth of goods in transit; The company expects fy22q4 supply chain problems to be improved.
The company maintains the growth expectation of the number of units in the annual revenue, and it is expected that fy22q4 in Greater China will continue to improve
The company believes that Nike can maintain its competitiveness in Greater China by virtue of continuous product innovation, brand strength and the marketing driving role of local athletes. At the beginning of the year of the tiger, the new models sold well, and Jordan hit a new high in quarterly sales in Greater China. At the same time, the company strengthened the cooperation with taobo, Baosheng and other dealers, and opened rise concept store in Beijing with its strategic partner taobo in early 22. The store and two other Nike unite successively set a new high for Nike’s global store sales. The company expects that the performance of fy22q4 Greater China may continue to improve and maintain the growth expectation of units in global revenue.
In this period, Nike’s revenue from Greater China continues to decline, and national brand may continue to increase its market share by virtue of its operating advantages in brand products; We expect that since the beginning of the year, the flow of Li Ning Anta special step terminal has achieved good growth, strongly linking products with sports and lifestyle scenes from the two dimensions of professional sports and sports life, transmitting unique brand memory, covering a wider range of consumption, and improving the experiential value of product experience + purchase experience + sports experience.
It is suggested to pay attention to: (brand) Li Ning, Anta sports, special step international, etc; (supply chain) Zhejiang Weixing Industrial Development Co.Ltd(002003) , Huali Industrial Group Company Limited(300979) , Shenzhou International, Zhejiang Sunrise Garment Group Co.Ltd(605138) , virgin, Zhejiang Natural Outdoor Goods Inc(605080) etc; (material) Zhe Jiang Taihua New Material Co.Ltd(603055) , Anhui Anli Material Technology Co.Ltd(300218) etc.
Risk warning: repeated global epidemic has caused terminal retail to fall short of expectations; Continuous supply chain problems; The price fluctuation of raw materials in the industry has increased, and the labor cost has increased.
