The revenue of US sportswear brand Nike in the first quarter of fiscal 2022-2023 increased 10% on a currency-neutral basis, led by Nike Direct growth of 14%, media reported.
Nike Brand Digital business fueled growth, increasing by 23%, driven by double-digit growth in EMEA, North America, and APLA, partially offset by declines in Greater China.
Moreover, wholesale revenues increased 1% on a reported basis and were up 8% on a currency-neutral basis, with growth due to improved levels of the available supply of inventory for partners, the media report added.
Revenue for Converse was $643 million, up 2% on a reported basis and up 8% on a currency-neutral basis, led by double-digit growth in North America and Europe, partially offset by declines in Asia.
In the first quarter, gross margin decreased 220 basis points to 44.3%, primarily driven by elevated freight and logistics costs, lower margins in Nike Direct business driven by higher markdowns, and unfavorable changes in net foreign currency exchange rates, including hedges, partially offset by strategic pricing actions.
The overall decrease in margins was primarily driven by North America, which took measures to liquidate excess inventory through NIKE Direct markdowns and wholesale marketplace actions.
Speaking to the media, John Donahoe, president, and CEO, of Nike, Inc said that their strong start to FY23 highlights the depth and breadth of Nike’s global portfolio, as we continue to manage through volatility.