One of the world’s largest sportswear company once again surprises analysts as Nike reports $12.3 Billion in revenue in Q4 (March, April, May 2021), 96% higher than the pandemic plagued Q4 of 2020. The primary reason for this rise was the opening of the worldwide economy and traditional footwear stores across the US, which has always been Nike’s strong suit.
Financial report from Nike shows that sales in the US almost doubled in this quarter hitting an incredible $5.38 billion. Overall profits for the quarter also rose by 140%, the highest in Nike’s illustrious history. Meanwhile, overall revenues for the year reached a whopping $40 billion despite the spike in Covid cases during December all across North America and Europe.
Compared to other rival brands, Nike has done fairly well to recover from the pandemic. Adidas and Puma also made strong recoveries in their Q1’s with nearly 25 % growth in revenue, but Nike’s $10 billion in sales dwarfs both Adidas’ ($6 billion) and Puma’s ($2 billion) for the quarter. With both Adidas and Puma revealing their results for summer sales in August only time will tell if they have made similar recoveries post the pandemic.
Nike’s membership model is also flourishing. With more than 300 million members globally, online buying from members hit a record $3 billion during the quarter. Overall, Swoosh’s digital sales were up 41% compared to the prior year.
Just like all business, it hasn’t been all rainbows and sunshine for the American Giant this quarter. Nike has lost some key players as clients in football. Most recently, four-time Olympic gold medalist Simone Biles left Nike for Athleta. Neymar Jr. left Nike to join Puma. The US sportswear brand has been mainly focussing on keeping limited stars in football with a focus on young players. Marcus Rashford and Kylian Mbappe are some of the young footballers that have signed long terms deals. Nevertheless, the commercial growth does suggest that Nike is doing fairly well to record profit after a lean period due to pandemic.