Beaverton, Oregon – Nike, the global footwear giant, generated sales of $44.6 bn in 2021. This represents a 19.3% increase on the previous financial year.
EBIT across the business rose by 130% to $6.9bn in 2021. This compares with $3bn in 2020, a rise of $3.9bn.
John Donahoe, Nike's CEO said: ‘The strong results this quarter and full fiscal year demonstrate Nike's unique competitive advantage.'
Nike said that performance in 2021 was fuelled by double-digit growth across footwear and apparel. Nike Direct, the company's online sales channel, generated 30% more revenue than in 2020, at $16.4bn.
The company increased its gross margin as it paid lower factory cancellation charges than in the previous financial year, because of the way these fell through the coronavirus pandemic. It also had to make fewer reserves for unsold merchandise becoming obsolete and, because it sold more, its logistics costs fell.
Nike also saved money on promotion at sporting events, many of which were cancelled because of coronavirus. Some additional promotion was done online.