Nike Inc’s third-quarter revenue has beaten analysts’ expectations, driven by the strong demand for its iconic sneakers like the Jordan Retro in North America and Europe.
The world’s largest sportswear maker’s shares rose by approximately 5% in extended trading following the news.
Nike’s success can be attributed to its highly successful franchises such as Jordan and LeBron, which have continued to grow their market share with each new launch.
This has helped the company maintain its position as the market leader while its closest rival, Adidas, struggles with its split with Kanye West. The German company is expected to post its first annual loss in three decades this year.
In addition to its strong franchises, Nike has also seen a surge in sales from consumers who are willing to pay more for its products, despite stubbornly high inflation. This has helped the company maintain a pandemic-induced boom in demand for athletic wear.
The company’s largest market, North America, saw a 27% increase in sales, while the Europe, Middle East, and Africa region saw a 17% rise. Overall, Nike’s revenue rose to $12.39 billion in the third quarter, compared to $10.87 billion in the same period last year. Analysts had expected revenue of $11.47 billion, according to IBES data from Refinitiv.
Nike’s strong performance in the third quarter has reinforced its position as a leader in the sportswear market. Its highly successful franchises and ability to appeal to consumers at all income levels have set it apart from its rivals.
With the continued growth of the sportswear market and the increasing demand for athletic wear, Nike is poised to maintain its dominance in the industry for the foreseeable future.