Nike revenue dips 1% as sales slow in China, US

Nike said revenue dipped 1 per cent to $12.2 billion in the fourth quarter due to inventory pileups, lagging sales in China and ongoing supply chain disruptions, marking the first time the company’s quarterly sales have declined since the first quarter of 2020.

“These are times when strong brands get stronger, and it has never been more clear than it is today,” Nike CEO John Donahue told investors on Monday. “As we look ahead, we remain confident in our long-term strategy.”

Gains in Europe offset sales dips in Greater China, which fell 19 per cent in the fourth quarter, and North America, where sales decreased 5 per cent. Increasing costs and uneven demand impacted the company’s fourth quarter. Net income fell 5 per cent to $1.4 billion, while gross profit margin took a hit thanks to higher freight costs and excess inventory. Long supply chain lead times led to higher inventory levels, up 23 per cent this year over last year. Despite the sales dip, Nike still beat analyst expectations of $12.07 billion, with shares rising 1 per cent in after-hours trading.