Nike Q3 Earnings Beat Expectations, Wholesale Revenue Up 18 Percent

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Nike reported better-than-expected results for the third quarter — despite recent inventory excesses and challenges in China—reporting third-quarter revenues of $12.4 billion, up 14 percent from the same time last year and ahead of analysts expectations.

direct sales were up 22 percent to $5.3 billion, and Nike brand digital sales were up 24 percent. Notably, wholesale revenues grew 18 percent in the quarter — the second consecutive quarter of impressive growth — even as Nike continues to emphasize its direct-to-consumer channels.

Part of this wholesale growth was due to comparisons to the prior year, in which inventory availability in the wholesale channel was lower than usual, though it is clear Nike is not neglecting this channel, despite its focus on d-to-c. In December, Nike reported that its wholesale business grew in the second quarter by 30 percent, compared to Nike Direct, which grew 25 percent., which previously indicated a move to limit the amount of product it would sell to the retailer.

“Fueled by compelling product innovation, deep relationships with consumers and a digital advantage that fuels brand momentum, our proven playbook allows us to navigate volatility as we create value and drive long-term growth,” Donahoe said in a statement.

 

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