About this content About Andrew Kessel Andrew is a financial journalist with experience covering public companies in a wide breadth of industries, including tech, medicine, cryptocurrency, mining and retail. In addition to Proactive, he has been published in a Financial Times-owned newsletter covering broker-dealer firms and in the Columbia Misourian newspaper as the lead reporter focused on higher education. He got his start with an internship at Rolling Stone magazine.  Read more About the publisher Pr ...

A customer enters a Nike store along the Magnificent Mile shopping district on December 21, 2022 in Chicago, Illinois.Nike on Thursday unveiled plans to cut costs by about $2 billion over the next three years as it lowered its sales outlook.The stock fell about 10% after hours. Nike shares were up 4.7% so far this year through Thursday's close, lagging far behind the S&P 500's gains for the year. Retailer Foot Locker, which has leaned heavily on Nike products, fell 4% after hours.Nike now expects full-year ...

Shares of Nike Inc. rose Thursday, as investors expressed optimism ahead of the athletic apparel and accessories giant’s fiscal second-quarter results.The stock NKE, +0.24% climbed 0.5% in midday trading. It has run up 10.7% in December, which puts it on track for a third straight monthly gain, and the best monthly performance since it soared 18.4% in November 2022.In comparison, the Consumer Discretionary Select Sector SPDR ETF XLY has rallied 6.3% month to date and the Dow Jones Industrial Average DJIA ha ...

Revenue Performance - NIKE, Inc. revenues for Q1 fiscal 2024 were $12.9 billion, a 2% increase year-over-year on both reported and currency-neutral basis[68] - NIKE Direct revenues grew 6% to $5.4 billion, representing 43% of total NIKE Brand revenues for Q1 fiscal 2024[68] - NIKE Brand footwear revenues increased 4% on a currency-neutral basis, driven by higher revenues in Jordan Brand, Women's, and Men's categories[76] - NIKE Brand apparel revenues decreased 1% on a currency-neutral basis, with unit sales down 12% but offset by higher average selling prices[76] - NIKE Brand Digital sales grew 2% to $2.9 billion in Q1 fiscal 2024 compared to $2.8 billion in Q1 fiscal 2023[76] - Comparable store sales increased 8% on a currency-neutral basis, contributing to NIKE Direct revenue growth[76] - North America revenues decreased by 2% to $5,423 million in Q1 2024, with NIKE Direct revenues increasing by 7% and wholesale revenues decreasing by 8%[85][88] - Europe, Middle East & Africa revenues increased by 8% to $3,610 million in Q1 2024, driven by a 12% increase in footwear revenues and a 27% increase in equipment revenues[90] - Greater China revenues increased by 5% to $1,735 million in Q1 2024, with a 12% increase excluding currency changes[85] - Asia Pacific & Latin America revenues increased by 2% to $1,572 million in Q1 2024, with a 3% increase excluding currency changes[85] - Converse revenues decreased by 9% to $588 million in Q1 2024[85] - EMEA revenues increased 6% on a currency-neutral basis, with NIKE Direct revenues up 6% due to 14% comparable store sales growth, partially offset by a 2% decline in digital sales[91] - Greater China revenues increased 12% on a currency-neutral basis, with NIKE Direct revenues up 10% driven by 7% comparable store sales growth and 6% digital sales growth[94] - APLA revenues increased 3% on a currency-neutral basis, with NIKE Direct revenues up 3% due to 12% comparable store sales growth, partially offset by a 3% decline in digital sales[96] - Footwear revenues in Greater China increased 11% on a currency-neutral basis, with unit sales up 9% and ASP contributing 2 percentage points of growth[94] - Apparel revenues in Greater China increased 14% on a currency-neutral basis, with unit sales down 2% but ASP contributing 16 percentage points of growth[94] - Converse revenues decreased 9% on a currency-neutral basis, with direct to consumer revenues down 14% and wholesale revenues down 5%[100] Profitability and Margins - Gross margin decreased by 10 basis points to 44.2% in Q1 fiscal 2024, primarily due to higher product costs and unfavorable foreign currency exchange rates[68] - EBIT margin for Q1 fiscal 2024 was 12.5%, down from 14.5% in Q1 fiscal 2023[71] - Gross margin decreased by 10 basis points to 44.2% in Q1 2024, primarily due to higher NIKE Brand product costs, unfavorable foreign currency exchange rates, and lower off-price margin, partially offset by higher full-price ASP and NIKE Direct margin[77] - Total NIKE, Inc. EBIT decreased by 12% to $1,614 million in Q1 2024, with an EBIT margin of 12.5%[86] - Reported EBIT in Greater China decreased 3%, with gross margin contraction of 80 basis points due to higher product costs and unfavorable currency changes[94] - Reported EBIT in APLA decreased 17%, with gross margin contraction of 410 basis points due to higher product costs and unfavorable currency changes[96] - Converse reported EBIT decreased 20%, with gross margin contraction of 200 basis points due to promotional activity and unfavorable currency changes[100] - Global Brand Divisions' loss before interest and taxes increased 2%, primarily due to higher advertising and marketing expenses[99] Expenses - Demand creation expense increased by 13% to $1,069 million in Q1 2024, driven by higher advertising and marketing expenses[79][80] - Operating overhead expense increased by 2% to $3,047 million in Q1 2024, primarily due to higher wage-related expenses and NIKE Direct variable costs[79][80] - Corporate revenues primarily consist of foreign currency hedge gains and losses, with a loss before interest and taxes increasing by $77 million in Q1 fiscal 2024, driven by unfavorable changes in foreign currency remeasurement and increased wage-related expenses[102] Inventory and Working Capital - Inventories as of August 31, 2023, were $8.7 billion, a 3% increase compared to May 31, 2023[68] - The net change in working capital resulted in a decrease to Cash provided by operations of $1,823 million for the first three months of fiscal 2024, primarily due to unfavorable changes in Accrued liabilities and Accounts receivable[109] Shareholder Returns and Share Repurchases - The company returned $1.7 billion to shareholders through share repurchases and dividends in Q1 fiscal 2024[68] - The company repurchased 10.5 million shares of NIKE's Class B Common Stock for $1,132 million in Q1 fiscal 2024, as part of an $18 billion share repurchase plan[109] Cash Flow and Financial Position - Cash provided by operations was an outflow of $66 million for the first three months of fiscal 2024, compared to an inflow of $357 million for the same period in fiscal 2023[109] - As of August 31, 2023, the company had Cash and equivalents and Short-term investments totaling $8.8 billion, with a weighted average days to maturity of 100 days[110] - The company's committed credit facilities remain unchanged, with no amounts outstanding as of August 31, 2023, and it maintains long-term debt ratings of AA- and A1 from Standard and Poor's and Moody's, respectively[110] Foreign Exchange Impact - The impact of foreign exchange rate fluctuations on the translation of consolidated revenues was a detriment of $57 million for the three months ended August 31, 2023[107] - The impact of foreign exchange rate fluctuations on Income before income taxes was a detriment of $2 million for the three months ended August 31, 2023[107] - The company estimates an unfavorable impact of $65 million in Income before income taxes due to translation of foreign currency-denominated profits and foreign currency-related gains and losses for the three months ended August 31, 2023[108] - The company's foreign exchange risk management program aims to lessen the effects of currency fluctuations, with no material changes to the hedging program or strategy as of August 31, 2023[103] Tax Rate - Effective tax rate decreased by 770 basis points to 12.0% in Q1 2024, primarily due to a one-time benefit from the delay of certain U.S. foreign tax credit regulations[83]

Financial Data and Key Metrics Changes - NIKE, Inc. revenue grew 2% on a reported and currency-neutral basis in Q1 2024, with NIKE Direct growing 6% and NIKE stores growing 12% [29][30] - Gross margin declined 10 basis points to 44.2% on a reported basis, primarily due to higher product costs and unfavorable changes in foreign currency exchange rates [29][30] - SG&A expenses grew 5% on a reported basis, mainly due to increased demand creation expenses around the World Cup [30] Business Line Data and Key Metrics Changes - In North America, Q1 revenue declined 1%, with wholesale down 8%, while NIKE Direct was up 7% [31] - In EMEA, Q1 revenue grew 6%, with NIKE Direct also up 6%, and NIKE stores growing 17% [33] - In Greater China, Q1 revenue grew 12%, with NIKE Direct growing 10% and NIKE stores up 12% [34] - In APLA, Q1 revenue grew 3%, with NIKE Direct up 3% and NIKE stores up 10% [35] Market Data and Key Metrics Changes - Retail sales across NIKE Direct and Wholesale grew mid-single digits versus the prior year [21] - Member engagement within NIKE Direct increased double digits compared to the prior year, with rising average order values [22] - In Greater China, the women's business outpaced overall growth in the quarter, driven by strong community engagement [16] Company Strategy and Development Direction - NIKE aims to elevate the marketplace through premium physical and digital retail experiences, focusing on direct consumer connections [22][25] - The company is committed to innovation in product offerings, particularly in running, basketball, and lifestyle segments, with a strong pipeline leading into the Paris Olympics [27][36] - NIKE is focused on improving profitability through operational efficiencies and strategic pricing, with expectations for gross margin expansion [28][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health and shape of the marketplace, with expectations for mid-single-digit revenue growth for the full year [36][37] - The company is closely monitoring the operating environment, including foreign currency exchange rates and consumer demand over the holiday season [37] - Management highlighted strong consumer demand and resilience, particularly in the context of the expanding definition of sport and athleisure trends [66] Other Important Information - NIKE's effective tax rate for the quarter was 12%, compared to 19.7% for the same period last year, primarily due to a one-time benefit from U.S. foreign tax credit regulations [31] - The company is focused on scaling a diverse product portfolio for long-term growth, not just for one quarter or season [27] Q&A Session Summary Question: Can you expand on the innovation pipeline for fall of '24? - Management highlighted the impact of in-person collaboration on the product pipeline, with strong innovations in basketball and running categories expected to drive growth [42][43] Question: What is the bigger tailwind for North America right now? - Management noted momentum from both NFL merchandise and college football merchandise as significant tailwinds [45] Question: Can you provide insights on the shaping of wholesale? - Management indicated that NIKE Direct would continue to lead growth, with a focus on maintaining a healthy marketplace [46][48] Question: What are the underlying demand trends as the first quarter progressed? - Management observed mid-single-digit retail sales growth, with strong performance in key wholesale partners and NIKE Direct [59][62] Question: How do you feel about the long-term opportunity for margin? - Management remains confident in achieving long-term profitability goals, emphasizing structural drivers and efficiency improvements [68][70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED MAY 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission File No. 1-10635 NIKE, Inc. (Exact name of Registrant as specified in its charter) Oregon 93-0584541 (State or other jurisdiction of incorporation) (IRS ...

NIKE, Inc. (NYSE:NKE) Q4 2023 Earnings Conference Call June 29, 2023 5:00 PM ET Company Participants Paul Trussell - Vice President, Investor Relations and Strategic Finance John Donahoe - President and Chief Executive Officer Matt Friend - Chief Financial Officer Conference Call Participants Tom Nikic - Wedbush Securities Matthew Boss - JPMorgan Jim Duffy - Stifel Brooke Roach - Goldman Sachs Cristina Fernandez - Telsey Advisory Group John Kernan - TD Cowen Operator Good afternoon, everyone. Welcome to N ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED FEBRUARY 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission File No. 1-10635 NIKE, Inc. (Exact name of Registrant as specified in its charter) Oregon 93-0584541 (State or other jurisdiction of incorp ...

NIKE, Inc. (NYSE:NKE) Q3 2023 Earnings Conference Call March 21, 2023 5:00 PM ET Company Participants Paul Trussell - VP, IR and Strategic Finance John Donahoe - President and CEO Matthew Friend - CFO Conference Call Participants Matthew Boss - JPMorgan Omar Saad - Evercore ISI Paul Lejuez - Citigroup Alexandra Straton - Morgan Stanley Robert Drbul - Guggenheim Securities Aneesha Sherman - Sanford C. Bernstein Kate Fitzsimons - Wells Fargo Gabriella Carbone - Deutsche Bank Operator Good afternoon, eve ...

Financial Performance - For Q2 fiscal 2023, NIKE, Inc. revenues increased 17% to $13.3 billion compared to Q2 fiscal 2022, with a 27% increase on a currency-neutral basis [84]. - Net income for Q2 fiscal 2023 was $1,331 million, with diluted earnings per share at $0.85, compared to $1,337 million and $0.83 in Q2 fiscal 2022 [84]. - Total NIKE, Inc. revenues for the first six months of FY2023 were $26,002 million, an 18% increase compared to the same period in FY2022 [87]. - Earnings before interest and taxes (EBIT) for the total NIKE Brand in Q2 fiscal 2023 were $2.257 billion, a 17% increase from $1.927 billion in Q2 fiscal 2022 [98]. - Corporate revenues for the second quarter of fiscal 2023 showed a loss before interest and taxes of $744 million, an increase of 48% compared to a loss of $503 million in the same quarter of fiscal 2022 [113]. - For the first six months of fiscal 2023, the loss before interest and taxes increased to $1,318 million, a 26% increase from a loss of $1,048 million in the first six months of fiscal 2022 [113]. Revenue Breakdown - NIKE Brand revenues, which account for over 90% of total revenues, rose 18% in Q2 fiscal 2023, with a 28% increase on a currency-neutral basis, driven by growth in North America and EMEA [84]. - NIKE Brand footwear revenues rose 36% in Q2 FY2023, with unit sales increasing by 28% and higher average selling price contributing 8 percentage points to growth [88]. - NIKE Brand apparel revenues increased 14% in Q2 FY2023, with unit sales up 10% and higher average selling price contributing 4 percentage points to growth [88]. - NIKE Brand wholesale revenues increased 19% in Q2 FY2023 compared to the same quarter in FY2022, driven by increased product availability [88]. - The Greater China segment experienced a 3% decline in revenues for Q2 fiscal 2023, totaling $1.788 billion [96]. - The Asia Pacific & Latin America segment saw a 19% increase in revenues, reaching $1.599 billion in Q2 fiscal 2023 [96]. - APLA revenues increased 34% for Q2 fiscal 2023 on a currency-neutral basis, driven by growth in Japan (42%), Korea (37%), and Southeast Asia & India (61%) [106]. Digital and Direct Sales - NIKE Brand digital sales reached $3.4 billion in Q2 FY2023, up from $2.7 billion in Q2 FY2022, reflecting a 34% growth on a currency-neutral basis [88]. - NIKE Direct revenues increased 18%, driven by strong digital sales growth of 25% and comparable store sales growth of 6% [100]. - NIKE Direct revenues in North America rose 23%, supported by a 31% growth in digital sales and a 9% increase in comparable store sales [99]. - NIKE Direct revenues for the first six months of fiscal 2023 increased 30%, driven by digital sales growth of 32% and comparable store sales growth of 28% [107]. Cost and Margin Analysis - Gross margin for Q2 fiscal 2023 decreased by 300 basis points to 42.9%, impacted by high promotional activity and increased costs [84]. - Gross margin for Q2 FY2023 was 42.9%, a decrease of 300 basis points compared to the prior year, primarily due to higher promotional activity and unfavorable currency exchange rates [89]. - Reported EBIT increased 21% primarily due to higher revenues, despite a gross margin contraction of approximately 320 basis points [100]. - Reported EBIT for Q2 fiscal 2023 increased 25% due to higher revenues and lower selling and administrative expenses, despite a gross margin contraction of approximately 190 basis points [106]. Inventory and Supply Chain - Inventory levels decreased by 3% in Q2 fiscal 2023 compared to Q1 fiscal 2023, reflecting strong demand and increased promotional activity [83]. - Ongoing supply chain challenges and macroeconomic conditions continue to create volatility in business results, with potential impacts on consumer demand and inventory levels [84]. Tax and Other Expenses - The effective tax rate for Q2 fiscal 2023 was 19.3%, up from 10.9% in Q2 fiscal 2022, due to decreased benefits from stock-based compensation [84]. - Total selling and administrative expenses for Q2 FY2023 were $4,124 million, a 10% increase from $3,759 million in Q2 FY2022 [90]. - Demand creation expense increased 8% in Q2 FY2023, primarily due to higher advertising and marketing expenses [90]. - Other (income) expense, net for Q2 FY2023 was $(79) million, compared to $(102) million in Q2 FY2022, reflecting improved foreign currency conversion results [92]. Share Repurchase and Cash Flow - Share repurchases totaled $2.6 billion for the first six months of fiscal 2023, with an average price of $101.96 per share, compared to $1.7 billion in the same period of fiscal 2022 [121]. - The company expects funding for share repurchases to come from operating cash flows and excess cash, with timing dictated by capital needs and market conditions [121]. - Cash provided by operations was $1,358 million for the first six months of fiscal 2023, a significant decrease from $3,868 million in the same period of fiscal 2022 [119]. - The net change in working capital resulted in a decrease of $2,009 million in cash provided by operations for the first six months of fiscal 2023, driven by higher accounts receivable of $1,421 million and inventories of $1,216 million [119].