Nike sees FY23 revenue up high single digits, gross margins down 250bps

CFO Matthew Friend states: "As a result of our strong Q3 performance, we now expect Fiscal ’23 reported revenue to grow high single-digits, an improvement from mid-single-digit guidance in the prior quarter, with approximately 600 basis points of foreign exchange headwinds. For the fourth quarter, this translates into flat to low single-digit revenue growth. Remember, more than six months ago, we strategically reduced our inventory commitments for the spring and summer seasons to ensure that both Nike and our partners can work through excess and early-arriving inventory. As a result, we expect wholesale revenue growth to moderate for the next few quarters. We expect FY23 gross margin to decline approximately 250 basis points, at the low end of our previous guidance range. This reflects ongoing and accelerated actions to reduce inventory by year-end elevated freight and logistics expenses including higher supply chain network costs in North America and 100 basis points of foreign exchange headwinds. For the full year, we expect SG&A to grow approximately 10%. We continue to expect our tax rate to be in the high teens range." Comments taken from the company’s Prepared Remarks document accompanying Q3 results.