The financial report for Nike’s third quarter reveals that the company’s revenues reached $12.4 billion, showing a YoY increase of 14% and a currency-neutral growth of 19%. Direct sales rose by 17% reported and 22% currency-neutral, while NIKE Brand Digital sales grew by 20% reported or 24% currency-neutral.
Wholesale revenues also grew by 12% reported and 18% currency-neutral. However, the gross margin decreased by 330 basis points to 43.3%, and the thinned-out earnings per share for the quarter were $0.79, marking a 9% decline. Read on for the latest Nike trends.

Nike beats expectations and raises outlook

After exceeding expectations with its quarterly results, Nike has raised its revenue outlook for the full year. Despite strong demand for its sneakers, including classic styles such as Jordan Retro and newer franchise launches like LeBron 20, the company warned of margin pressures due to its continued efforts to dispose of excess inventory through substantial discounts. Nike revealed that apparel inventory decreased in the third quarter and anticipates ending fiscal 2023 with healthy inventory levels. Meanwhile, competitor Adidas is expected to incur its first annual loss in three decades, following its separation from Kanye West. While Nike’s stock initially fell 2% after hours, the company’s margins remain under
pressure due to a robust US dollar, higher freight costs, and deeper discounts to reduce excess inventory, according to Chief Financial Officer Matthew Friend. Nike now forecasts a decline in gross margin of roughly 250 basis points for 2023, at the lower end of its previous range.

Nike’s Latest Running Shoe Upgrades

The Winflo and Pegasus running shoes from Nike have undergone significant upgrades in their latest versions. The Winflo, which is suitable for both novice and experienced runners, features a newly designed mid-foot band that accommodates arches of all sizes, a redesigned upper mesh for breathability and fit, and a complete overhaul of the lining and padding around the upper. The midsole of the shoe is equipped with Nike React foam and features two Nike Zoom Air units located at the forefoot and heel. Meanwhile, the Pegasus, which is celebrating its 40th anniversary, features a newly redesigned midsole with ZoomX on top and Cushlon 3.0 at the bottom, along with a Flyknit upper and improved arch support. The Structure 25 and React Infinity Run 3 shoes have also been updated with new
features, such as a single-layer mesh upper for breathability, improved arch support, and redesigned uppers with integrated Flywire technology.

Finally, the Invincible Run 3 features a Flyknit upper, a Nike ZoomX foam midsole with a rocker design, and a new upper design with a wider forefoot.

To conclude, Nike’s fiscal year revenue is expected to grow by high single digits, despite disappointing sales in China due to the ongoing pandemic. The company saw double-digit sales increases in all other markets, with strong performance in North America and Europe, Middle East, and Africa. Nike has been investing heavily in its direct-to-consumer sales channel, with continued growth in Nike Direct and digital sales. The company expects expenses to be up 10% for the full year and is taking a cautious approach to planning for the next quarter, given uncertainty about consumer confidence and the economy.