American sportswear company Nike's revenues at $51.4 bn in FY24

American multinational athleticwear firm Nike, Inc has reported revenues of $51.4 billion in fiscal 2024 (FY24), up 1 per cent from the previous year's $51.2 billion on a currency-neutral basis. Nike's gross margin saw an improvement, increasing by 110 basis points to 44.6 per cent.

The company reported a net income of $5.7 billion, a 12 per cent increase, with diluted earnings per share at $3.73. Excluding restructuring charges, diluted earnings per share would have been $3.95. Selling and administrative expenses also rose by 1 per cent, reaching $16.6 billion, which included $379 million in restructuring charges.

Inventory levels for Nike decreased by 11 per cent compared to the prior year, reflecting a reduction in units to $7.5 billion, the company said in a press release.

The Nike brand achieved revenues of $49.3 billion, reflecting a 1 per cent growth on both a reported and currency-neutral basis. This growth was driven by strong performance in Greater China and the Asia Pacific and Latin America (APLA) regions, which partially offset declines in North America.

Nike Direct revenues reached $21.5 billion, marking a 1 per cent increase on a reported and currency-neutral basis. This was led by a 6 per cent growth in Nike-owned stores, though it was partially offset by a 3 per cent decline in Nike brand digital sales. Wholesale revenues were reported at $27.8 billion, showing a 1 per cent increase on a reported basis and a 2 per cent rise on a currency-neutral basis.

Conversely, revenues for the Converse brand declined significantly, falling to $2.1 billion. This represented a decrease of 14 per cent on a reported basis and 15 per cent on a currency-neutral basis, primarily due to weaker performance in North America and Western Europe.

In the fourth quarter (Q4 FY24), Nike posted revenues of $12.6 billion, down 2 per cent on a reported basis but flat on a currency-neutral basis. The fourth quarter gross margin increased by 110 basis points to 44.7 per cent, while selling and administrative expenses decreased by 7 per cent to $4.1 billion.

Nike's net income for the fourth quarter was $1.5 billion, a 45 per cent increase, with diluted earnings per share at $0.99. Excluding restructuring charges, diluted earnings per share would have been $1.01.

Nike brand revenues were $12.1 billion, experiencing a 1 per cent decline on a reported basis but a 1 per cent increase on a currency-neutral basis. This growth was supported by strong performances in Greater China, APLA, and Europe, the Middle East, and Africa (EMEA), although offset by a decline in North America, the release added.

Nike direct revenues for the fourth quarter were $5.1 billion, down 8 per cent on a reported basis and 7 per cent on a currency-neutral basis, with a 10 per cent drop in Nike brand digital sales and a 2 per cent decline in Nike-owned stores. Wholesale revenues for the fourth quarter were $7.1 billion, showing a 5 per cent increase on a reported basis and 8 per cent on a currency-neutral basis. Revenues for Converse in the fourth quarter were $480 million, down 18 per cent on a reported basis and 17 per cent on a currency-neutral basis, mainly due to declines in North America and Western Europe.

"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," said John Donahoe, president and CEO, Nike. "I'm confident that our teams are lining up our competitive advantages to create greater impact for our business."

Fibre2Fashion News Desk (DP)