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Nike announces fourth quarter and full year results

Jul 1, 2024 United States
Nike announces fourth quarter and full year results
The US-based sportswear giant has announced modest results for the fourth quarter and the full year, as it seeks to position itself for profitable growth in the long term
“We are taking our near-term challenges head-on, while making continued progress in the areas that matter most to Nike's future – serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace. I’m confident that our teams are lining up our competitive advantages to create greater impact for our business”, commented John Donahoe, President and CEO of Nike.

Fourth Quarter Results

Nike’s revenue in the quarter that ended on the 31st of May totalled 12.6 billion US dollars, a decrease of 2% on a reported basis and flat on a currency-neutral basis, as compared to the same period of last fiscal year.

Nike brand contributed 12.1 billion US dollars to the company’s total revenue in the fourth quarter, reflecting a decline of 1% on a reported basis and an increase of 1% on a currency-neutral basis, on a comparable basis to the same quarter of fiscal 2023. The brand recorded currency-neutral growth in Greater China, APLA and EMEA, which was partially offset by a decline in North America.

Converse’s sales generated the remaining 480 million US dollars, which suggests a decrease of 18% on a reported basis and 17% on a currency-neutral basis versus the same prior year period, primarily due to weak performances in North America and Western Europe.

In the fourth quarter of fiscal 2024, Nike’s gross margin expanded by 110 basis points to 44.7% from 46.3% in the same quarter of the prior year, mainly due to “strategic pricing actions, lower ocean freight rates and logistics costs, and lower warehousing, partially offset by a lower margin in Nike Direct and unfavourable changes in net foreign currency exchange rates”.

Nike’s fourth quarter net income was 1.5 billion US dollars, up by 45% on a comparable basis to the same period of fiscal 2023, and diluted earnings per share were 0.99 US dollars; excluding restructuring charges and after-tax benefits, diluted earnings per share would have been 1.01 US dollars.

Full Year Results

The company’s revenue for the full year 2024 amounted to 51.4 billion US dollars, an increase of 1% on a currency-neutral basis from 51.2 billion US dollars in the previous fiscal year.

In these twelve months, Nike’s net income was 5.7 billion US dollars, up by 12% as compared to fiscal 2023, and diluted earnings per share were 3.73 US dollars; excluding restructuring charges and after-tax benefits, diluted earnings per share would have been 3.95 US dollars.


Image Credits: esquire.com



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