Summary
NIKE, Inc. reported revenues of $12.94 billion for the first quarter of fiscal year 2024, a modest 2% increase over the prior year, with revenue growth remaining consistent on a currency-neutral basis. The company saw positive momentum in its Direct-to-Consumer (DTC) channels, with NIKE Direct revenues growing 6% and contributing approximately 43% of total NIKE Brand revenues. This growth was driven by comparable store sales and digital channels, indicating continued strength in how consumers engage directly with the brand. Despite a slight decrease in gross margin to 44.2% due to higher product costs and unfavorable currency movements, strategic pricing actions helped to mitigate these pressures, particularly through higher average selling prices (ASP). Profitability saw a slight dip, with net income falling 1% to $1.45 billion. This was influenced by increased demand creation expenses and a lower effective tax rate, which was significantly impacted by a one-time tax benefit related to foreign tax credit regulations. The company continued its commitment to returning capital to shareholders, repurchasing $1.13 billion in stock and paying $524 million in dividends during the quarter, demonstrating confidence in its financial position and future prospects amidst ongoing global economic uncertainties.
Financial Highlights
47 data points| Revenue | $12.94B |
| Cost of Revenue | $7.22B |
| Gross Profit | $5.72B |
| SG&A Expenses | $4.12B |
| Net Income | $1.45B |
| EPS (Basic) | $0.95 |
| EPS (Diluted) | $0.94 |
| Shares Outstanding (Basic) | 1.53B |
| Shares Outstanding (Diluted) | 1.54B |
Key Highlights
- 1Total revenues increased by 2% to $12.94 billion compared to the prior year, with currency-neutral revenue growth also at 2%.
- 2NIKE Direct revenues grew by 6% to $5.36 billion, representing a significant portion (43%) of total NIKE Brand revenues, showcasing a strong direct consumer engagement strategy.
- 3Gross margin slightly decreased by 10 basis points to 44.2%, primarily due to increased product costs and unfavorable foreign currency exchange rates, though strategic pricing actions provided a partial offset.
- 4Net income decreased by 1% to $1.45 billion, impacted by increased demand creation expenses and a lower effective tax rate which included a one-time benefit.
- 5The company returned $1.7 billion to shareholders through $1.13 billion in share repurchases and $524 million in dividends during the quarter.
- 6North America revenues saw a slight decline of 1% on a currency-neutral basis, attributed to wholesale channel adjustments, while NIKE Direct in the region grew by 7%.
- 7Greater China demonstrated strong growth with revenue increasing 12% on a currency-neutral basis, driven by improved physical retail traffic and strong Direct-to-Consumer performance.