Overview of Nike Inc (NKE) 3rd quarter 2022 earnings
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Category: Nike (NKE)
Date: 22 March 2022 Stock price of Nike (NKE): $130.19 Market Capital of Nike (NKE): $205.9 billion Overview of Nike Inc (NKE) 3rd quarter 2022 earnings report. Nike is one of the most valuable brands in the world and one of the largest clothing and apparel brands in the world. For the quarter the group reported revenues of $10.9 billion and net income of $1.39 billion
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Our third quarter results demonstrate NIKE’s ability to navigate through volatility, while continuing to serve consumers directly and digitally, at scale,” said Matt Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc"
More About Nike Inc (NKE)
NIKE, Inc., based near Beaverton, Oregon, is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories.
Overview of Nike (NKE) 3rd quarter 2022 earnings report
Third Quarter Income Statement Review
• Third quarter reported revenues were $10.9 billion, up 5 percent compared to prior year and up 8 percent on a currency-neutral basis.*
• NIKE Direct sales were $4.6 billion, up 15 percent on a reported basis and up 17 percent on a currency-neutral basis.
• NIKE Brand Digital sales increased 19 percent, or 22 percent on a currency-neutral basis, led by 33 percent growth in North America.
• Gross margin increased 100 basis points to 46.6 percent. • Diluted earnings per share for the quarter was $0.87
• Third quarter reported revenues were $10.9 billion, up 5 percent compared to prior year and up 8 percent on a currency-neutral basis.*
• NIKE Direct sales were $4.6 billion, up 15 percent on a reported basis and up 17 percent on a currency-neutral basis.
• NIKE Brand Digital sales increased 19 percent, or 22 percent on a currency-neutral basis, led by 33 percent growth in North America.
• Gross margin increased 100 basis points to 46.6 percent. • Diluted earnings per share for the quarter was $0.87
Nike (NKE) management commentary 3rd quarter 2022 earnings report
BEAVERTON, Ore., Mar. 21, 2022 — NIKE, Inc. (NYSE:NKE) today reported fiscal 2022 financial results for its third quarter ended February 28, 2022
"NIKE’s strong results this quarter show that our Consumer Direct Acceleration strategy is working, as we invest to achieve our growth opportunities," said John Donahoe, President and CEO, NIKE, Inc. "Fueled by deep consumer connections, compelling product innovation and an expanding digital advantage, we have the right playbook to navigate volatility and create value through our relentless drive to serve the future of sport."** Third Quarter revenues increased 8 percent on a currency-neutral basis, led by NIKE Direct growth of 17 percent. NIKE Brand Digital business fueled growth, increasing by 22 percent, driven by double-digit growth in North America, APLA and EMEA, partially offset by declines in Greater China. Further contributing to NIKE Direct growth was the steady normalization of traffic in owned physical retail, with NIKE owned stores up 14 percent. Wholesale revenues declined 1 percent on a reported basis and were up 1 percent on a currency-neutral basis, with growth in EMEA and APLA offset by declines in North America and Greater China.
“Our third quarter results demonstrate NIKE’s ability to navigate through volatility, while continuing to serve consumers directly and digitally, at scale,” said Matt Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. “Marketplace demand continues to significantly exceed available inventory supply, with a healthy pull market across our geographies.”**
"NIKE’s strong results this quarter show that our Consumer Direct Acceleration strategy is working, as we invest to achieve our growth opportunities," said John Donahoe, President and CEO, NIKE, Inc. "Fueled by deep consumer connections, compelling product innovation and an expanding digital advantage, we have the right playbook to navigate volatility and create value through our relentless drive to serve the future of sport."** Third Quarter revenues increased 8 percent on a currency-neutral basis, led by NIKE Direct growth of 17 percent. NIKE Brand Digital business fueled growth, increasing by 22 percent, driven by double-digit growth in North America, APLA and EMEA, partially offset by declines in Greater China. Further contributing to NIKE Direct growth was the steady normalization of traffic in owned physical retail, with NIKE owned stores up 14 percent. Wholesale revenues declined 1 percent on a reported basis and were up 1 percent on a currency-neutral basis, with growth in EMEA and APLA offset by declines in North America and Greater China.
“Our third quarter results demonstrate NIKE’s ability to navigate through volatility, while continuing to serve consumers directly and digitally, at scale,” said Matt Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. “Marketplace demand continues to significantly exceed available inventory supply, with a healthy pull market across our geographies.”**
Nike Inc (NKE) stock price chart over the last 5 years
The image below shows the stock price chart of Nike (NKE) over the last 5 years. And its been a good time for Nike stockholders with the stock increasing sharply by 170.8% over the last 5 years.
The stock of Nike Inc (NKE) is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Nike Inc stock is very positive at this point in time.
The stock of Nike Inc (NKE) is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Nike Inc stock is very positive at this point in time.
Nike Inc (NKE) stock price chart over the last 5 years
Latest stock valuation of Nike Inc (NKE)
So what is Nike (NKE) stock worth based on their 3rd quarter 2022 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Nike stock at $96.20 a stock
We therefore believe the stock of Nike (NKE) is overvalued at its current price of $130.19
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $96 thus a good entry point into Nike stock would be at $86.40 or below.
We expect the stock of Nike (NKE) to pull back strongly from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued
We therefore believe the stock of Nike (NKE) is overvalued at its current price of $130.19
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $96 thus a good entry point into Nike stock would be at $86.40 or below.
We expect the stock of Nike (NKE) to pull back strongly from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is overvalued
Next earnings release of Nike Inc (NKE)
It is expected that Nike Inc will release their 4th quarter 2022 earnings report in late June 2022
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