NYSE$NKE

NIKE · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Nike's third quarter results for fiscal year 2021 were reported, revealing revenue growth driven by Greater China and digital sales, but impacted by supply chain challenges in North America.

NIKE, Inc. reported a 3% increase in revenue to $10.4 billion, with Greater China leading the growth. Digital sales surged, but North America faced declines due to supply chain disruptions. Gross margin improved, and diluted earnings per share rose to $0.90.

  • NIKE's third quarter revenue increased by 3% to $10.4 billion, but decreased 1% on a currency-neutral basis.
  • NIKE Direct sales increased 20%, while NIKE Brand digital sales increased 59%.
  • North America revenue declined 10% due to supply chain challenges.
  • Gross margin increased 130 basis points to 45.6%.

Headline financials

Total Revenue

$10.4B

Previous: $10.1B+2.5%
EPS (adj)

$0.90

Previous: $0.78+15.4%
Gross Margin

45.6%

Previous: 44.3%+2.9%
Demand Creation Expense

$711M

Previous: $870M-18.3%
Operating Overhead Expense

$2.33B

Previous: $2.41B-3.4%
Effective Tax Rate

11.4%

Previous: 3.9%+192.3%
Capital Expenditures

-$521M

Previous: -$797M+34.6%
Free Cash Flow

$928M

Previous: $50M+1756.0%
Net Income

$1.45B

Previous: $847M+71.1%
Operating Income

$1.68B

Previous: $1.19B+41.0%
Gross Profit

$4.72B

Previous: $4.47B+5.5%
Cash & Equivalents

$8.52B

Previous: $2.86B+197.5%
Total Assets

$36.2B

Previous: $26.2B+38.0%
Stock-Based Comp

$142M

Previous: $113M+25.7%

Revenue & EPS history

Nike · Revenue · Quarterly

$10.4B

Q3 2021+2.5%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Nike · $10.3B total across 2 segments · Q3 2021

  • NIKE Brand
    $9.77B+1.6%
  • Converse
    $570M+12.6%

Forward guidance

NIKE anticipates continued growth and strategic execution, but faces risks and uncertainties that could affect future results.

Tailwinds

  • Accelerating innovation.
  • Creating a seamless, premium marketplace.
  • Strong brand momentum.
  • Driving focused growth.
  • Value of a more direct, digitally-enabled strategy.

Headwinds

  • Disruption related to the COVID-19 pandemic.
  • Global container shortages.
  • U.S. port congestion.
  • Mandatory COVID-19 related store closures.
  • Risks and uncertainties that could cause actual results to differ materially.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.5%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+1.3%

Avg return

30 days after

56%

40 / 72 earnings

Positive

+25.8%

Q3 2020

Best reaction

-19.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-6.0%-6.4%
Q2 2026-5.3%-8.6%-1.9%
Q1 2026+4.9%+2.1%-7.4%
Q4 2025+0.2%+2.8%+6.9%
Q3 2025-5.5%-8.5%-22.4%
Q2 2025+0.1%-0.1%-7.9%
Q1 2025-6.0%-7.0%-12.7%
Q4 2024-19.9%-19.2%-22.9%
Q3 2024-6.4%-7.7%-5.7%
Q2 2024-11.0%-11.0%-16.2%
Q1 2024+6.9%+6.3%+9.6%
Q4 2023-2.4%-3.5%-3.9%
Q3 2023-1.4%-0.4%+2.7%
Q2 2023+12.4%+12.8%+20.8%
Q1 2023-15.8%-10.2%-4.9%
Q4 2022-9.0%-10.4%-4.5%
Q3 2022+1.4%+1.9%+3.5%
Q2 2022+3.3%+2.7%-10.1%
Q1 2022-5.0%-7.7%+3.8%
Q4 2021+16.0%+17.2%+25.0%
Q3 2021-5.1%-5.3%-7.3%
Q2 2021+2.5%+0.9%+0.2%
Q1 2021+12.1%+9.6%+14.7%
Q4 2020-6.4%-2.0%-1.6%
Q3 2020+25.8%+32.5%+39.1%
Q2 2020-0.6%-0.4%+3.9%
Q1 2020+3.6%+5.3%+4.3%
Q4 2019+1.7%+2.9%+6.0%
Q3 2019-5.2%-3.8%+2.9%
Q2 2019+4.9%-1.3%+16.6%
Q1 2019-0.7%+0.5%-13.3%
Q4 2018+11.7%+6.9%+7.8%
Q3 2018-2.6%-0.3%-0.4%
Q2 2018-0.5%+0.1%+5.7%
Q1 2018-1.1%-2.6%+6.7%
Q4 2017+10.6%+9.9%+10.0%
Q3 2017-8.1%-4.0%-3.9%
Q2 2017+2.9%+2.1%+4.1%
Q1 2017-2.1%-3.2%-4.6%
Q4 2016+6.2%+7.2%+6.9%
Q3 2016-3.5%
Q2 2016-0.8%
Q1 2016+8.3%
Q4 2015+3.3%
Q3 2015+4.6%
Q2 2015+0.4%
Q1 2015+10.7%
Q4 2014+1.6%
Q3 2014-5.0%
Q2 2014-1.6%
Q1 2014+6.8%
Q4 2013+2.9%
Q3 2013+8.6%
Q2 2013+7.5%
Q1 2013-0.6%
Q4 2012-10.5%
Q3 2012-2.7%
Q2 2012+3.2%
Q1 2012+3.4%
Q2 2011-1.0%
Q4 2011-1.0%
Q3 2011+0.2%
Q1 2011-0.4%
Q4 2010+1.5%
Q3 2010+0.1%
Q3 2009+0.1%
Q2 2009+0.4%
Q2 2010+0.4%
Q1 2010+0.3%
Q4 2009+0.3%
Q4 2008+0.3%
Q1 2009+0.3%

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