Nike, Inc. said fourth quarter reported revenues were 12.3 billion dollars, up 96 percent compared to prior year and increasing 21 percent compared to the fourth quarter of 2019. Full year reported revenues increased 19 percent to 44.5 billion dollars. Gross margin for the quarter increased 850 basis points to 45.8 percent, while diluted earnings per share were 93 cents for the quarter and 3.56 dollars for the full year.
“Nike’s strong results this quarter and full fiscal year demonstrate Nike’s unique competitive advantage and deep connection with consumers all over the world,” said John Donahoe, president & CEO, Nike, Inc. in a statement, adding, “FY21 was a pivotal year for Nike as we brought our Consumer Direct Acceleration strategy to life across the marketplace.”
Highlights of Nike’s fourth quarter performance
Revenues for Nike, Inc. rose 88 percent on a currency-neutral basis, largely driven by the recovery of the business operations due to the impact of Covid-19 in the prior year.
Revenues for the Nike brand were 11.8 billion dollars, up 88 percent to prior year on a currency-neutral basis, driven by triple-digit growth in the company’s wholesale business and strong double-digit growth in Nike Direct. Nike Direct fourth quarter sales increased 73 percent to 4.5 billion dollars.
Nike added that North America delivered record revenues, up 141 percent on a reported basis for the fourth quarter, up 29 percent compared to the fourth quarter of 2019, including increased wholesale revenue due to delayed shipments from the previous quarter.
As markets re-opened and sport returned, North America digital posted 54 percent revenue growth versus prior year and 177 percent compared to the fourth quarter of 2019.
EMEA’s fourth quarter reported revenues increased 124 percent, up 21 percent compared to the fourth quarter of 2019, while digital sales increased 40 percent, or 170 percent compared to the fourth quarter of 2019.
Revenues for Converse were 596 million dollars, up 85 percent on a currency-neutral basis, led by strong marketplace demand in North America and Western Europe.
Net income for the quarter was 1.5 billion dollars, and diluted earnings per share were 93 cents compared to a net loss of 790 million dollars and a net loss per share of 51 cents in fiscal year 2020.
Review of Nike’s fiscal 2021 financial results
Revenues for Nike, Inc. increased 17 percent on a currency-neutral basis in 2021.
Revenues for the Nike brand were 42.3 billion dollars, up 17 percent on a currency-neutral basis, driven by growth across Nike Direct and wholesale, double-digit growth across footwear and apparel, with growth led by sportswear and the Jordan brand.
Nike Direct revenues were 16.4 billion dollars, up 32 percent or 30 percent on a currency-neutral basis, led by 64 percent or 60 percent on a currency-neutral basis, growth in Nike brand digital, with all geographies growing strong double-digits. Despite temporary store closures across the marketplace due to Covid-19, comparable store sales grew 4 percent.
Revenues for Converse were 2.2 billion dollars, up 16 percent on a currency-neutral basis, led by strong double-digit sales growth in the company’s digital business.
Gross margin increased 140 basis points to 44.8 percent, while net income was 5.7 billion dollars and diluted earnings per share were 3.56 dollars, up 123 percent.