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Nike Beats Quarterly Revenue Estimates As Affluent Americans Continue To Spend

Nike Beats Quarterly Revenue Estimates As Affluent Americans Continue To Spend

Nike Beats Quarterly Revenue Estimates As Affluent Americans Continue To Spend

Nike exceeded quarterly revenue estimates thanks to an increase in demand for its athletic apparel and sneakers in Europe and North America.

The company particularly benefitted from an increase in spend among affluent Americans who are continuing to spend on high-priced items despite rising inflation and a slowdown in the overall economy.

Nike’s Q4 revenue reached $12.23 billion, which was higher than the $12.06 billion analysts had estimated, IBES data from Refinitiv shows. Overall, the company’s net income for the quarter fell to $1.44 billion, down from $1.51 billion during the same quarter last year.

Looking ahead, Nike expects Q1 revenue to be either flat or slightly up compared to the previous year, as the company continues to deal with lockdowns and other disruptions in China. It expects full-year revenue to improve by low double digits on a currency-neutral basis, CNBC reported.

Chief Financial Officer (CFO) Matthew Friend noted that Nike has accounted for increased ocean freight costs, product costs, supply chain investments, as well as higher levels of markdowns on its projects.

“We continue to closely monitor consumer behavior, and we’re not seeing signs of pullback at this point in time, and so we continue to execute the strategy and the plan we have, which is working,” he said, adding that the company remained optimistic for the new fiscal year.

Following the release of the company’s earnings report, Nike’s stock rose by 2.3% to $113.12. The company plans to invest its gains in a new $18 billion class B stock repurchase plan.

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