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Nov 30, 2023
Nike Q2 2024 Earnings Report
Nike's Q2 2024 results demonstrated a return to focusing on innovation and growth, with strong execution and a turning point in driving more profitable growth.
Key Takeaways
NIKE, Inc. reported a 1% increase in revenues to $13.4 billion for the second quarter of fiscal year 2024. Diluted earnings per share increased by 21% to $1.03, and the gross margin improved by 170 basis points to 44.6%. The company is also initiating an enterprise initiative to accelerate future growth and efficiency, expecting up to $2 billion in cumulative cost savings over the next three years.
Second quarter revenues increased 1% to $13.4 billion.
NIKE Direct revenues were up 6%, while NIKE Brand Digital sales increased 4%.
Gross margin improved by 170 basis points to 44.6%.
Diluted earnings per share increased 21% to $1.03.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
NIKE is embarking on a company-wide journey to invest in areas of greatest potential, increase the pace of innovation, and accelerate agility and responsiveness, with revised guidance to be provided on the conference call.
Positive Outlook
- Focusing on innovation and growth.
- Driving more profitable growth.
- Identifying opportunities to deliver up to $2 billion in cumulative cost savings over the next three years.
- Investing a majority of cost savings to fuel future growth and accelerate innovation.
- Streamlining the organization to increase efficiency.
Challenges Ahead
- Softer second-half revenue outlook.
- Expected pre-tax restructuring charges of approximately $400 million to $450 million in the third quarter of fiscal year 2024.
- Potential risks and uncertainties related to achieving the expected benefits of the enterprise initiative.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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