What's going on?

Nike reported better-than-expected quarterly results earlier this week, as the world�s biggest sportswear retailer brought its well-dressed foot firmly back into its own camp.

What does this mean?

Nike scored a hat-trick last quarter. Firstly, production was back on track after most of its key suppliers got up and running again ��geddit? � following Covid-related shutdowns. Secondly, strong demand sent sales in North America ��Nike�s biggest market � up 9% from the same time the year before.

Nike scored its third win by continuing its move away from discount-happy wholesalers and investing heavily in its own online and flagship stores instead. By doing that, it made 15% more revenue from direct-to-consumer sales last quarter, meaning direct sales made up nearly half of its total sales (tweet this). And speaking of total sales, they grew by a better-than-expected 5% last quarter, so impressed investors sent its shares up 6%.

Why should I care?

Zooming in: Nike has problems too.
Nike wasn�t without issues, mind you: the retailer reckons its sales would�ve grown even more if it weren�t for clogged shipping routes holding up its stock. On top of that, sales from its Chinese business � still reeling from a boycott of Western brands � fell 5% last quarter. Nike�s not sure when either of those issues will clear up, and it has the effects of war and rising material prices to deal with too. The company�s not even going to try and predict how that will go: it held off on giving an outlook for the coming year.

The bigger picture: Totally meta.
Nike�s found somewhere to shelter from those supply issues: the metaverse. The retailer launched �Nike Virtual Studios� earlier this year, which�ll oversee the company�s push into the space and try to establish the sneaker company as a key player in the virtual world. Nike�s not alone, either: rival Adidas worked with Bored Ape Yacht Club and Prada to make NFTs in recent months.