Nike hosted an earnings call for investors on Monday afternoon, in it breaking down its results for the second quarter of the 2022 fiscal year.
The call came after Nike posted earnings an hour earlier reporting second quarter revenue up just 1 percent versus the year prior to $11.4 billion, with direct-to-consumer sales increasing 8 percent to $4.7 billion and Nike brand digital sales up 11 percent.
In a press release, Nike attributed the flat revenue to ongoing supply chain challenges. It pointed to revenue declines in Asia and its Asia Pacific Latin America regions caused by “lower levels of available inventory resulting from COVID-19 related factory closures.”
On the earnings call, Nike CEO and president John Donahoe and CFO Matt Friend went into more detail on Nike’s challenges, successes, and focuses going forward. Though the quarterly calls are stuffed with brand platitudes about how generally incredible Nike is in all regards, they are also a rare source of publicly available insight from the company’s leadership about its performance. Here are some of the more interesting takeaways from the Nike Q2 2022 earnings call.
A Tribute to Virgil Abloh
Nike CEO John Donahoe sits with Drake, Virgil Abloh, and Rosalia at the 2020 Nike Forum event in New York City
Donahoe opened his statements by memorializing Off-White designer Virgil Abloh, a top Nike collaborator who helped the company retain its cool in the second half of the 2010s.
“I want to take a moment to acknowledge the recent passing of Virgil Abloh,” Donahoe said before addressing Nike’s performance. “Since 2016, Virgil’s been a beloved member of the Nike, Jordan, and Converse family. He was a brilliant creative force who shared a passion for challenging the status quo and pushing forward a new vision while inspiring multiple generations along the way. But what stood out to me personally about Virgil was his humility and his humanity.”
Abloh, who died in November from a rare form of cancer, released over 50 pairs of shoes with Nike this year alone. His work with the brand is unfinished—there are still multiple Off-White x Nike projects designed before his passing that have yet to release.
Donahoe gave no update on what will become of the unreleased sneakers, but extended his sympathy to those affected by Abloh’s death.
“We offer our condolences to the many who shared a connection with Virgil. He will be missed greatly,” Donahoe said on the call.
SOURCE : COMPLEX
