What: While announcing the first quarter earnings (Q1) for fiscal year 2022 month ending August 31, 2021, the retailer also disclosed follow-ups on its strategy.

Why it is important: Taking supply chain issues into consideration, Nike will increase its prices.

Nike announced first quarter earnings (Q1) for fiscal year 2022 month ending August 31, 2021, with revenues up 16% compared to last year. Nike direct sales were up 28% and gross margin improved to 46.5% as compared to 44.8% in Q1 last year.

Digital sales for Q1 was 20% of total sales and the company is confident it will meet its goal of having digital represent 40% of total revenue by 2025.

Supply chain issues have been a challenge throughout the quarter with all footwear factories in Vietnam still closed. As a result of these issues, Nike has readjusted its forward looking statements for the second half of the year to single digit increases.

Price increases will be implemented in the second half of the year to offset transportation, logistics and air freight costs. The continued shift to direct to consumer will also help to offset anticipated added costs in the second half of the year.

Nike Prices To Rise Amid Supply Chain Issues While Profits Increase 23%

NIKE Reports Fiscal 2022 First Quarter Results - Press release