“We expect to continue benefiting from exceptional demand against the backdrop of lean marketplace inventory.”

In context

“ncial outlook reflects inventory supply significantly lagging consumer demand across NIKE’s portfolio of brands. However, NIKE’s long-term market opportunity is larger than ever. And so, we remain focused on what we can control in the short term and on where we are heading through our Consumer Direct Acceleration strategy and on what is required to deliver on our fiscal ‘25 financial outlook. Specifically for fiscal ‘22, we continue to expect revenue to grow mid-single digits versus the prior year, in line with guidance from 90 days ago. For Q3, we expect revenue to grow low-single digits versus the prior year due to the ongoing impacts from lost production from COVID-related disruptions in Vietnam. We are raising our gross margin guidance to expand 150 basis points versus the prior year. We expect to continue benefiting from exceptional demand against the backdrop of lean marketplace inventory. Full price realization will remain above our long-term target with lower channel markdowns. However, we expect product costs to rise in the second half due to higher macro input costs. We’re also planning for supply chain costs for the full year to increase relative to our estimates 90 days ago with a greater impact in the second half. Last, we now expect foreign exchange to be a 55 basis-point tailwind versus the prior year. We continue to expect SG&A to grow mid to high teens for the full year as demand-creation spend normalizes, and we continue to invest in the capabilities to support our consumer-led digital transformation. We now expect our effective tax rate to be in the low-teens for the full year. Consumer Direct Acceleration is driving our business forward, and it is transforming”