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Nike Report Revenues Up For Q3’24
NIKE, Inc. (NYSE:NKE) reported fiscal 2024 financial results for its third quarter ended February 29, 2024.
- Third quarter revenues were slightly up on both a reported and currency-neutral basis at $12.4 billion
- NIKE Direct revenues were $5.4 billion, slightly up on a reported and currency-neutral basis
- NIKE Brand Digital sales decreased 3 percent on a reported basis and 4 percent on a
currency-neutral basis - Wholesale revenues were $6.6 billion, up 3 percent on a reported and currency-neutral basis
- Gross margin increased 150 basis points to 44.8 percent, including a detriment of 50 basis points due to restructuring charges
- Selling and administrative expense increased 7 percent to $4.2 billion, including $340 million of restructuring charges
- Diluted earnings per share was $0.77, including $0.21 of restructuring charges. Excluding these charges, Diluted earnings per share would have been $0.98
“We are making the necessary adjustments to drive NIKE’s next chapter of growth,” said John
Donahoe, President & CEO, NIKE, Inc. “We’re encouraged by the progress we’ve seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace.”
Matthew Friend, Executive Vice President & Chief Financial Officer, NIKE, Inc. said, “Our teams
are focused on what matters most to return to strong growth. We are taking action to build a faster, more efficient NIKE and maximize the impact of our new innovation cycle.”
Third Quarter Income Statement Review
- Revenues for NIKE, Inc. were slightly up on both a reported and currency-neutral basis at
$12.4 billion. - Revenues for the NIKE Brand were $11.9 billion, up 2 percent on a reported and currency neutral basis, as currency-neutral growth in North America, Greater China and APLA was offset by declines in EMEA.
- Revenues for Converse were $495 million, down 19 percent on a reported basis and down 20 percent on a currency-neutral basis, primarily due to declines in North America and Europe.
- Gross margin increased 150 basis points to 44.8 percent, primarily driven by strategic pricing
actions and lower ocean freight and logistics costs, partially offset by higher product input costs and restructuring charges. - Selling and administrative expense increased 7 percent to $4.2 billion.
- Demand creation expense was $1.0 billion, up 10 percent, reflecting an increase in marketing expense.
- Operating overhead expense increased 6 percent to $3.2 billion, primarily due to restructuring charges, partially offset by lower wage-related expenses.
- The effective tax rate was 16.5 percent compared to 16.0 percent for the same period last year.
- Net income was $1.2 billion, down 5 percent, and Diluted earnings per share was $0.77, decreasing 3 percent.
February 29, 2024 Balance Sheet Review
- Inventories for NIKE, Inc. were $7.7 billion, down 13 percent compared to the prior year, reflecting a decrease in units.
- Cash and equivalents and short-term investments were $10.6 billion, down approximately
$0.2 billion from last year, as cash generated by operations was more than offset by share repurchases, cash dividends, capital expenditures and bond repayment.
Recap Nike’s financial 2024 so far:
