Nike posts record profit

Backed by an excellent final quarter, Nike closed its financial year with a substantial bonus. The sportswear group is getting more and more revenue from direct sales to consumers.

“Crucial year”

In the fourth quarter (months of March, April and May), sales rose by 96 per cent compared to the same period last year, when the Covid pandemic was at its peak. For the financial year as a whole, sales rose 19 per cent to 44.5 billion dollars (37.3 billion euros).

“The 2021 financial year was a pivotal year for Nike as we rolled out our Consumer Direct acceleration strategy,” said CEO John Donahoe. “Buoyed by our momentum, we continue to invest in innovation and our digital leadership to lay the foundation for Nike’s long-term growth.”

Jordan collection performs best

Revenue for the Nike brand was 42.3 billion dollars (35.4 billion euros), up 17 per cent on a currency-neutral basis. Converse experienced similar growth and posted sales of 2.2 billion dollars (1.8 billion euros). Across the group, the Jordan collection performed best, with 31 per cent sales growth.

Sales from the company’s own stores, including online (‘Nike Direct’), increased by 32 per cent to 16.4 billion dollars (13.7 billion euros), mainly due to a steep increase in online sales. E-commerce now accounts for over 20 per cent of total sales. Despite temporary store closures due to the coronavirus, comparable store sales still increased by 4 per cent.

Monster profit

Over the full financial year, Nike realised a net profit of 5.7 billion dollars (4.8 billion euros), an increase of no less than 126 per cent.