The revenue of sportswear brand Nike in the first quarter of fiscal 2023 increased 10 per cent on a currency-neutral basis, led by Nike Direct growth of 14 per cent. Nike Brand Digital business fueled growth, increasing by 23 per cent, driven by double-digit growth in EMEA, North America and APLA, partially offset by declines in Greater China.

Wholesale revenues increased 1 per cent on a reported basis and were up 8 per cent on a currency-neutral basis, with growth due to improved levels of available supply of inventory for partners, the company said in a press release.

The revenue of sportswear brand Nike in the first quarter of fiscal 2023 increased 10 per cent on a currency-neutral basis, led by Nike Direct growth of 14 per cent. Nike Brand Digital business fueled growth, increasing by 23 per cent, driven by double-digit growth in EMEA, North America and APLA, partially offset by declines in Greater China.

Revenue for Converse was $643 million, up 2 per cent on a reported basis and up 8 per cent on a currency-neutral basis, led by double-digit growth in North America and Europe, partially offset by declines in Asia.

In the first quarter, gross margin decreased 220 basis points to 44.3 per cent, primarily driven by elevated freight and logistics costs, lower margins in our Nike Direct business driven by higher markdowns, and unfavorable changes in net foreign currency exchange rates, including hedges, partially offset by strategic pricing actions. The overall decrease in margins was primarily driven by North America, which took measures to liquidate excess inventory through NIKE Direct markdowns and wholesale marketplace actions.

“Our strong start to FY23 highlights the depth and breadth of Nike’s global portfolio, as we continue to manage through volatility,” said John Donahoe, president and CEO, Nike, Inc. “Our competitive advantages, including the strength of our brand, deep consumer connections and pipeline of innovative products, continue to prove that our strategy is working. We expect our unrelenting focus on better serving the consumer to continue to fuel growth and create value like only Nike can.”

“Nike’s first quarter results set the foundation for another year of strong growth,” said Matthew Friend, executive vice president and chief financial officer, Nike, Inc. “Our focus continues to be the consumer, as we take action to navigate near-term dynamics while expanding long-term structural benefits through our Consumer Direct Acceleration strategy.”

Fibre2Fashion News Desk (RR)