Loading...
•
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.
Nike
Nike
Nike Revenue by Segment
Nike Revenue by Geographic Location
Revenue by Segment
Nike Brand Revenue
CapyFin.comConverse Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comGreater China Revenue
CapyFin.comAPLA Revenue
CapyFin.comGlobal Brand Divisions Revenue
CapyFin.com 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.
- Possible delays in implementing the initiative or potential disruptions to NIKE’s business or operations.
- Unfavorable changes in net foreign currency exchange rates and higher product input costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income