The footwear and sportswear brand reported its second quarter financial results for 2022, which grew 1% year on year to earn US $ 11.4 billion.
Direct sales for the period were US $ 4.7 billion, up 9%, while digital sales grew 12%, leading to a 40% increase in North America. Gross margin increased to 45.9% and thin earnings per share for the quarter increased to US $ 0.83, more than 6%.
Converse’s revenue for the second quarter was US $ 557 million, up 16% on a non-monetary basis, leading to strong performances across all channels in Europe and North America.
The cost of creating demand was US $ 1 billion, more than 40%, which the company attributed to the normalization of costs against brand promotion and continued investment in digital marketing to match related demand.
Matt Friend, Executive Vice President and Chief Financial Officer at Nike, said: “Our second quarter results reflect our deep consumer connections, the continued strength of our brands and strong marketplace demand. As we navigate through short-term supply challenges, we are focused on executing our Consumer Direct Acceleration strategy to fuel our long-term financial outlook.”