Summary
NIKE, Inc.'s third quarter of fiscal year 2024 (ending February 29, 2024) showed modest revenue growth, with total revenues reaching $12.43 billion, a slight increase from $12.39 billion in the prior year period. The company reported a consolidated gross margin of 44.8%, an improvement of 150 basis points year-over-year, driven by strategic pricing actions and lower logistics costs, which more than offset higher input costs and restructuring charges. However, net income saw a decrease of 5% to $1.17 billion, or $0.77 per diluted share, impacted by increased selling and administrative expenses, particularly demand creation and operating overhead expenses, which rose by 7% and 6% respectively, partly due to restructuring charges. Key strategic initiatives include continued investment in NIKE Direct operations and digital platforms, alongside efforts to elevate the wholesale partner experience. The company is also focused on accelerating innovation and streamlining its organization to drive future growth, expecting a majority of the annual wage savings from these actions to be reinvested in consumer-facing activities. Despite cautious consumer spending and high promotional activity across the industry, NIKE remains confident in its brand strength and consumer connections, focusing on gross margin expansion and disciplined cost control.
Financial Highlights
47 data points| Revenue | $12.43B |
| Cost of Revenue | $6.87B |
| Gross Profit | $5.56B |
| SG&A Expenses | $4.23B |
| Net Income | $1.17B |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 1.51B |
| Shares Outstanding (Diluted) | 1.53B |
Key Highlights
- 1Revenues for the third quarter of fiscal 2024 reached $12.43 billion, a slight increase from $12.39 billion in the prior year period.
- 2Gross margin improved by 150 basis points to 44.8%, driven by strategic pricing and lower logistics costs.
- 3Net income decreased by 5% to $1.17 billion, translating to $0.77 per diluted share.
- 4Selling and administrative expenses increased by 7%, influenced by higher demand creation and operating overhead costs, including restructuring charges.
- 5NIKE Direct revenues were flat at $5.4 billion, with comparable store sales up 3% but digital sales down 4%.
- 6Inventories decreased by 9% to $7.7 billion compared to May 31, 2023, primarily due to reduced units.
- 7The company returned approximately $1.4 billion to shareholders in the quarter through share repurchases and dividends.