Loading...Loading...Apparel and footwear company Nike Inc NKE reported fourth-quarter financial results after the market close Thursday.Here are the key highlights.What Happened: Nike reported fourth-quarter revenue of $12.6 billion, down 2% year-over-year. The revenue total missed a Street consensus estimate of $12.91 billion, according to data from Benzinga Pro.Nike Direct revenue was $5.1 billion in the fourth quarter, down 8% year-over-year. Wholesale revenues were $7.1 billion in the fourth quarter, up ...

Nike shoes and logo are seen at a store in Nice, France on May 28, 2024.Nike on Thursday reported its slowest annual sales growth in 14 years, excluding the Covid-19 pandemic, as the sneaker giant warned of "challenges" that led it to cut its current year outlook."We are driving better balance across our portfolio. While we are encouraged by our progress, our fourth quarter results highlighted challenges that have led us to update our Fiscal '25 outlook," finance chief Matthew Friend said in a news release. ...

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Overview of NIKE's Q4 and full-year FY2024 financial performance, including revenue, profitability, and management's future outlook [Fourth Quarter (Q4) FY2024 Performance](index=1&type=section&id=Fourth%20Quarter%20(Q4)%20FY2024%20Performance) NIKE's Q4 FY2024 saw a 2% revenue decrease to $12.6 billion, offset by improved gross margin and a 45% net income increase Q4 FY2024 Key Financial Metrics | Metric | Q4 FY2024 | Change (Reported) | | :--- | :--- | :--- | | **Total Revenues** | $12.6 billion | -2% | | **NIKE Direct Revenues** | $5.1 billion | -8% | | **Wholesale Revenues** | $7.1 billion | +5% | | **Gross Margin** | 44.7% | +110 bps | | **Net Income** | $1.5 billion | +45% | | **Diluted EPS** | $0.99 | +50% | - The decline in total revenue was driven by an **8%** decrease in NIKE Direct sales (**10%** drop in digital), while Wholesale revenues grew by **5%**[2](index=2&type=chunk)[3](index=3&type=chunk) [Full Year (FY2024) Performance](index=1&type=section&id=Full%20Year%20(FY2024)%20Performance) FY2024 revenues remained flat at $51.4 billion, with gross margin expanding and net income increasing by 12% to $5.7 billion Full Year FY2024 Key Financial Metrics | Metric | Full Year FY2024 | Change (Reported) | | :--- | :--- | :--- | | **Total Revenues** | $51.4 billion | 0% | | **NIKE Direct Revenues** | $21.5 billion | +1% | | **Wholesale Revenues** | $27.8 billion | +1% | | **Gross Margin** | 44.6% | +110 bps | | **Net Income** | $5.7 billion | +12% | | **Diluted EPS** | $3.73 | +15% | [Management Outlook](index=1&type=section&id=Management%20Outlook) Management updated the Fiscal '25 outlook, acknowledging near-term challenges and focusing on repositioning for sustainable long-term growth - CEO John Donahoe stated the company is addressing challenges head-on while focusing on innovation, consumer pace, and growing the complete marketplace[2](index=2&type=chunk) - CFO Matthew Friend noted that Q4 results highlighted challenges that led to an updated Fiscal '25 outlook and actions to reposition NIKE for sustainable, profitable long-term growth[2](index=2&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) In-depth review of NIKE's income statement, balance sheet, and shareholder returns for Q4 and full-year FY2024 [Income Statement Analysis](index=2&type=section&id=Income%20Statement%20Analysis) Income statement analysis reveals mixed Q4 results with lower revenue but improved profitability, while full-year revenue was flat with net income growth [Fourth Quarter (Q4) FY2024 Income Statement](index=1&type=section&id=Fourth%20Quarter%20(Q4)%20FY2024%20Income%20Statement) Q4 FY2024 income statement shows a 2% revenue decrease to $12.6 billion, offset by a 1% increase in gross profit and a 45% rise in net income Q4 FY2024 Income Statement Summary | Metric | Q4 FY2024 (in millions) | Q4 FY2023 (in millions) | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $12,606 | $12,825 | -2% | | **Gross Profit** | $5,634 | $5,595 | +1% | | **Net Income** | $1,500 | $1,031 | +45% | - Gross margin increased **110 basis points** to **44.7%**, driven by strategic pricing actions and lower ocean freight and logistics costs[3](index=3&type=chunk) - Selling and administrative expense decreased **7%** to **$4.1 billion**, primarily due to a **9%** reduction in operating overhead expense[3](index=3&type=chunk) [Full Year (FY2024) Income Statement](index=2&type=section&id=Full%20Year%20(FY2024)%20Income%20Statement) Full year FY2024 income statement indicates flat revenues at $51.4 billion, with gross profit up 3% and net income increasing 12% to $5.7 billion Full Year FY2024 Income Statement Summary | Metric | FY2024 (in millions) | FY2023 (in millions) | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $51,362 | $51,217 | 0% | | **Gross Profit** | $22,887 | $22,292 | +3% | | **Net Income** | $5,700 | $5,070 | +12% | - Selling and administrative expense increased **1%** to **$16.6 billion**, which includes **$379 million** of restructuring charges[5](index=5&type=chunk) - The effective tax rate for the full year was **14.9%**, down from **18.2%** in the prior year[5](index=5&type=chunk) [Balance Sheet Analysis](index=2&type=section&id=Balance%20Sheet%20Analysis) NIKE's balance sheet as of May 31, 2024, shows strong liquidity with $11.6 billion in cash and investments, alongside an 11% reduction in inventories Balance Sheet Summary | Balance Sheet Item | May 31, 2024 (in billions) | May 31, 2023 (in billions) | % Change | | :--- | :--- | :--- | :--- | | **Cash & Equivalents** | $9.86 | $7.44 | +33% | | **Short-term Investments** | $1.72 | $3.23 | -47% | | **Total Cash & ST Investments** | $11.58 | $10.67 | +9% | | **Inventories** | $7.52 | $8.45 | -11% | | **Total Assets** | $38.11 | $37.53 | +2% | | **Long-term Debt** | $7.90 | $8.93 | -11% | [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) NIKE returned $6.4 billion to shareholders in FY2024 through dividends and share repurchases, marking 22 consecutive years of dividend increases Shareholder Return Summary | Return Type | Q4 FY2024 | Full Year FY2024 | | :--- | :--- | :--- | | **Dividends** | $560 million | $2.2 billion | | **Share Repurchases** | $1.0 billion | $4.3 billion | | **Total Returned** | $1.6 billion | $6.4 billion | - The company has now achieved **22 consecutive years** of increasing dividend payouts[7](index=7&type=chunk) - As of May 31, 2024, a total of **$9.1 billion** has been utilized for share repurchases under the current **$18 billion** program approved in June 2022[8](index=8&type=chunk) [Segment & Brand Performance](index=6&type=section&id=Segment%20%26%20Brand%20Performance) Analysis of NIKE Brand's geographic revenue, Converse brand performance, and revenue breakdown by sales channel and product [NIKE Brand Revenue by Geography](index=6&type=section&id=NIKE%20Brand%20Revenue%20by%20Geography) NIKE Brand's Q4 geographic revenue was mixed, with Greater China and APLA growing, while North America and EMEA declined NIKE Brand Revenue Growth (Currency-Neutral) | Region | Q4 FY24 Growth (CCY) | FY2024 Growth (CCY) | | :--- | :--- | :--- | | **North America** | -1% | -1% | | **EMEA** | +1% | 0% | | **Greater China** | +7% | +8% | | **APLA** | +4% | +5% | | **TOTAL NIKE BRAND** | +1% | +1% | [Converse Brand Performance](index=1&type=section&id=Converse%20Brand%20Performance) Converse brand revenues significantly declined in Q4 and full year FY2024, primarily due to weakness in North America and Western Europe Converse Revenue Performance | Period | Revenue | Change (Reported) | Change (CCY) | | :--- | :--- | :--- | :--- | | **Q4 FY2024** | $480 million | -18% | -17% | | **Full Year FY2024** | $2.1 billion | -14% | -15% | [Revenue by Sales Channel & Product](index=1&type=section&id=Revenue%20by%20Sales%20Channel%20%26%20Product) Q4 revenue showed divergence by channel, with NIKE Direct sales down 8% and Wholesale up 5%, while Footwear declined and Apparel/Equipment grew Q4 FY24 Revenue by Channel | Channel | Q4 FY24 Revenue | Change (Reported) | Change (CCY) | | :--- | :--- | :--- | :--- | | **NIKE Direct** | $5.1 billion | -8% | -7% | | **Wholesale** | $7.1 billion | +5% | +8% | Q4 FY24 NIKE Brand Revenue by Product | NIKE Brand Product | Q4 FY24 Revenue | % Change (Reported) | | :--- | :--- | :--- | | **Footwear** | $8,237 million | -4% | | **Apparel** | $3,323 million | +3% | | **Equipment** | $578 million | +34% | [EBIT by Segment](index=9&type=section&id=EBIT%20by%20Segment) FY2024 EBIT saw North America as the largest contributor, while Converse EBIT declined significantly, leading to a 6% increase in total NIKE, Inc. EBIT FY2024 EBIT by Segment | Segment (in millions) | FY2024 EBIT | % Change YoY | | :--- | :--- | :--- | | **North America** | $5,822 | +7% | | **EMEA** | $3,388 | -4% | | **Greater China** | $2,309 | +1% | | **APLA** | $1,885 | -2% | | **Converse** | $474 | -30% | | **TOTAL NIKE, INC. EBIT** | $6,539 | +6% | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliation of key non-GAAP financial metrics, specifically diluted EPS, to provide a clearer view of operational results [Diluted EPS Reconciliation](index=2&type=section&id=Diluted%20EPS%20Reconciliation) Diluted EPS reconciliation shows GAAP EPS of $0.99 for Q4 and $3.73 for FY2024, with non-GAAP figures higher after excluding restructuring charges Diluted EPS Reconciliation Summary | EPS Metric | Q4 FY2024 | Full Year FY2024 | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | **$0.99** | **$3.73** | | Restructuring Charges | $0.03 | $0.29 | | Tax effect of charges | ($0.01) | ($0.07) | | **Diluted EPS (Non-GAAP)** | **$1.01** | **$3.95** |

SAN DIEGO, June 27, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired NIKE, Inc. (NYSE: NKE) Class B Common stock between March 19, 2021 and March 21, 2024. NIKE is a global athletic footwear and apparel company that designs, markets, and sells products for its NIKE, Jordan, and Converse brands. For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 3 ...

Core Viewpoint - Nike's upcoming fourth-quarter earnings are not expected to significantly impact its stock price, with analysts focusing more on fiscal 2025 guidance as a key indicator of future performance [2][5]. Financial Performance - For Q4 2024, analysts estimate revenue at $12.9 billion, diluted EPS at 84 cents, and net income at $1.27 billion, showing slight increases from Q4 2023 figures [1]. Fiscal 2025 Guidance - CFO Matthew Friend indicated a projected low-single-digit revenue decline in the first half of fiscal 2025, attributed to a shift towards innovation and a subdued macroeconomic outlook [2]. - Analysts from Wedbush and Bank of America Securities emphasize that guidance for fiscal 2025 will be the most critical topic during Nike's earnings call [2]. Market Conditions - Nike has faced increased macroeconomic headwinds, particularly in the EMEA and Greater China regions, leading to a plan to cut $2 billion in costs over the next three years [3]. Business Initiatives - Nike plans to enhance its marketing efforts during the upcoming Olympics, aiming to spend more than in previous years [4]. - Retail partners like Foot Locker and Dick's Sporting Goods express optimism about Nike's upcoming product launches and innovations, indicating a positive outlook for consumer engagement [4][5]. Stock Performance - Nike shares have declined over 13% year-to-date, following disappointing results from the last two earnings reports [5].

Loading...Loading...NIKE, Inc. NKE is set to release earnings results for its fourth quarter, after the closing bell on Thursday.Analysts expect the Beaverton, Oregon-based company to report quarterly earnings at 83 cents per share. That’s up from 66 cents per share in the year-ago period. Nike will post revenue of $12.85 billion for the quarter, compared to $12.82 billion a year earlier, according to data from Benzinga Pro.On June 21, Oppenheimer analyst Brian Nagel upgraded Nike from Perform to Outperform ...

LOS ANGELES, CA - APRIL 9: A Nike corporate logo hangs on the front of their store at The Grove on ... [+] April 9, 2023, in Los Angeles, California. (Photo by Gary Hershorn/Getty Images)Corbis via Getty Images[Note: Nike fiscal year ends in May]Nike’s stock (NYSE: NKE), a company designing, developing, and marketing footwear, apparel, equipment, and accessory products, is scheduled to report its fiscal 2024 fourth-quarter results on Thursday, June 27. We expect Nike’s stock to likely trade higher with reve ...

Seeing as Nike (NKE)  is the dominant retailer as it relates to sports apparel, investors may be wondering if it’s time to buy stock in the “Just Do It” company for a rebound ahead of its fiscal fourth quarter results after market hours on Thursday, June 27.Despite its industry leadership and market dominance, Nike’s stock has dropped -13% this year on concerns of slower revenue growth particularly among digital sales in what it says is a challenging macro environment and a need to revamp its product life c ...

AleksandarGeorgiev/E+ via Getty Images When reviewing the market performance of late, it is clear that it is "top-heavy" and many participants are puzzled about how long it can continue. For reasons economic, AI, liquidity, or otherwise, it is the reality we are living in. With the risk-free rate being the highest in near-term history and warning signs of an economic downturn, investors can choose to diversify the risks by betting on the laggards and reducing their exposure to the mega caps or trimming ...

LOS ANGELES, June 26, 2024 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against NIKE, Inc. ("Nike" or "the Company") (NYSE: NKE) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.Investors who purchased the Company's securities between March 19, 2021 and March 21, 2024, inclusive (the "Class Period"), are encouraged t ...