Inside Nike's Latest Quarter

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Today, we're discussing the latest results for Nike and Shoe Carnival. We also look at one company?changing the way?footwear midsoles and insoles are made.

Let's get into it.

Nike Q3 Earnings: Wins in Wholesale and China

Nike reported better-than-expected results for the third quarter — despite recent inventory excesses and challenges in China.

Notably, wholesale revenues grew 18% in the quarter — the second consecutive quarter of outsized growth — even as Nike continues to emphasize its DTC channels.

Another standout: Nike’s business grew in China for the second consecutive quarter as other brands struggle to recover there, a sign that the Swoosh can continue to regain market share and momentum in the crucial region.

A Look at Shoe Carnival's Q4

Shoe Carnival reported sales for the fourth quarter that fell short of expectations from analysts.

In Q4, demand shifted from athletic categories to nonathletic categories. Shoe Carnival expects non-athletic to outperform in the first half of 2023, though athletic is expected to grow in the back half the year, bolstered by back-to-school.

Looking ahead to 2023, uncertainty in the economic environment and colder weather has contributed to a slower start to the year and weaker consumer demand, said Shoe Carnival chief merchandising officer Carl Scibetta.

Read more about the retailer's results, here.

Blumaka Looks to Solve Footwear's Foam Waste Problem

Industry veteran Stuart Jenkins, CEO and co-founder of Blumaka, believes companies are ignoring an important environmental issue.

“The footwear industry is generating approximately 100 million tons of scrap foam,” he said. “So when you get stuck on focusing on what foam is made from — even though that’s important — it really doesn’t completely address the problem.”

Jenkins, who spent several years leading the innovation team at Deckers Brands, co-founded Blumaka in 2018 to change the way footwear midsoles and insoles are made, by recycling scrap foam into new products. Hampered somewhat by the pandemic, the company spent four years fine-tuning its process and establishing a facility in Dongguan, China, where it now collects waste from other factories in the area.

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