Nike Inc (NYSE:NKE) has reported a jump in second-quarter revenues but noted that inventory levels remain elevated despite attempts to “liquidate stock.”
In results released after the US market close on Tuesday, Nike said revenue in the three months to 30 November 2022 rose to US$13.3bn, a 17% increase on last year, with Nike Direct to consumer sales contributing US$5.4bn.
"NIKE’s results this quarter are a testament to our deep connection with consumers," said John Donahoe, president and chief executive of Nike in a statement.
Gross profit was US$5.7bn, 10% higher than the same period last year, however, margins declined by 3% to 42.9% which was put down to higher discounts to get rid of stock, unfavourable foreign exchange rates and higher logistics and input costs.
Inventories in the quarter stood at US$9.3bn, a 43% increase due to “lapping prior year supply chain disruption, as well as higher input costs.”
During the quarter, Nike returned approximately US$2.1bn to shareholders, with US$480mln paid in dividends and US$1.6bn via a share buyback.