Global sportswear giant NIKE has published its financial results for the fourth quarter of the 2023-24 financial year, as well as its full-year results for the period, headlined by a full-year revenue increase year-on-year (YoY) on 2022-23, but a quarterly 2% year-on-year drop.
Yearly revenue was up just over $100 million on 2022-23, up to $51.36 billion, with gross profit increasing by 3% to $22.89 billion, figures that are roughly flat with 2022-23’s numbers but help to paint a picture of the coming quarterly issues the brand expects to face.
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The fourth quarter (Q4) results came in above earnings estimates but below revenue expectations primarily down to cost-cutting measures undertaken by the company, with $12.61 billion in revenue drawn compared to predictions of around $12.84 billion.
These measures are likely to continue into 2025 as the manufacturer preempts a drop in sales in the coming first quarter of the 2024-25 fiscal year that the company expects will be caused by a continued decline in direct-to-consumer sales as well as doubts on the coming performance of its business in China, one of the brand’s largest markets.
Nike Direct (its DTC business) remained broadly stagnant across 2023-24 compared to the previous year, but Q4 revenue in particular shrank between 7% and 8%
Speaking on the projected struggles next year, Nike chief financial officer and executive vice president Matthew Friend stated: “We are driving better balance across our portfolio. While we are encouraged by our progress, our fourth quarter results highlighted challenges that have led us to update our [fiscal year 2024-25] outlook. We are taking actions to reposition Nike to be more competitive, and to drive sustainable, profitable long-term growth."
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By GlobalDataNike president and chief executive John Donahoe also commented on the areas of the business that he expects to become a priority in helping the company to continue its growth trajectory and avoid being sidelined by setbacks, saying: “We are taking our near-term challenges head-on, while making continued progress in the areas that matter most to Nike's future – serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace.
“I'm confident that our teams are lining up our competitive advantages to create greater impact for our business."
Nike's shares plunged nearly 20% in trading on Friday after its Q4 results.
