Revenues decreased 1% in the fourth quarter to US$12.2 billion but were up 3% on a currency-neutral basis.

Revenues for the Nike brand were US$11.7 billion, down 1% on a reported basis, led by 20% growth in EMEA, while revenues for Converse were also down 1% to US$593 million due to wholesale revenue declines offset by growth in its direct-to-consumer business.

Gross margin declined in the period to 45%, which the company attributes primarily to higher inventory obsolescence reserves in Greater China and elevated freight and logistics costs. Net income for the fourth quarter was US$1.4 billion, a drop of 5%.

For the full 2022 fiscal year, revenues increased 5% to US$46.7 billion. Gross margin increased to 46%, primarily due to margin expansion in the Nike Direct business, while net income came in at US$6 billion, an increase of 6%.

“Nike’s results this fiscal year are a testament to the unmatched strength of our brands and our deep connection with consumers,” said John Donahoe, President and CEO.

“Our competitive advantages, including our pipeline of innovative product and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport.”