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Feb 29, 2024
Nike Q3 2024 Earnings Report
Nike's third quarter revenues were slightly up, with growth in NIKE Brand offset by a decline in Converse. Gross margin increased, driven by strategic pricing and lower costs.
Key Takeaways
NIKE, Inc. reported a slight increase in revenue for the third quarter, with NIKE Brand revenues up 2% and Converse revenues down 19%. Gross margin increased due to strategic pricing actions and lower costs. Diluted earnings per share was $0.77, or $0.98 excluding restructuring charges.
Third quarter revenues were slightly up on both a reported and currency-neutral basis at $12.4 billion.
NIKE Direct revenues were $5.4 billion, slightly up on a reported and currency-neutral basis.
Gross margin increased 150 basis points to 44.8 percent, including a detriment of 50 basis points due to restructuring charges.
Diluted earnings per share was $0.77, including $0.21 of restructuring charges. Excluding these charges, Diluted earnings per share would have been $0.98.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
NIKE is making necessary adjustments to drive the next chapter of growth, building a multiyear cycle of new innovation, sharpening brand storytelling, and working with wholesale partners to elevate and grow the marketplace. The company is focused on returning to strong growth by building a faster, more efficient NIKE and maximizing the impact of the new innovation cycle.
Positive Outlook
- Building a multiyear cycle of new innovation.
- Sharpening brand storytelling.
- Working with wholesale partners to elevate and grow the marketplace.
- Taking action to build a faster, more efficient NIKE.
- Maximizing the impact of the new innovation cycle.
Challenges Ahead
- Involves risks and uncertainties that could cause actual results to differ materially.
- Risks and uncertainties are detailed from time to time in reports filed by NIKE with the U.S. Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K.
- Decline in Converse revenues
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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