A slight increase in revenue for Nike
“We are making the necessary adjustments to drive Nike’s next chapter of growth. We’re encouraged by the progress we’ve seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace”, commented John Donahoe, President & CEO of Nike.
Third Quarter Results
In the three months that ended on the 29th of February, the sportswear company’s revenue reached 12.42 billion US dollars, a slight increase on both a reported and currency-neutral basis from the 12.39 billion US dollars recorded in the same period of fiscal 2023.
While revenue of the Nike brand increased by 2% to 11.9 billion US dollars in the third quarter on a reported and currency-neutral basis, revenue of the Converse brand declined by 19% on a reported basis and 20% on a currency-neutral basis against the prior year third quarter.
In the third quarter of fiscal 2024, Nike’s gross margin improved by 150 basis points to 44.8% from the same quarter of last fiscal year, mainly due to “strategic pricing actions and lower ocean freight and logistics costs, partially offset by higher product input costs and restructuring charges”.
The company’s net income for the third quarter was 1.17 billion US dollars, a decrease of 5% on a comparable basis to the 1.24 billion US dollars recorded in the same period last year. Diluted earnings per share were 0.77 US dollars, down by 3% from 0.79 US dollars in the third quarter of last year.
Image Credits: nike.com