Nike posts drop in Q4 revenues

Nike's revenues for the fourth quarter of 12.6 billion dollars, were down 2 percent on a reported basis and flat on a currency-neutral basis.

Full year revenues were 51.4 billion dollars, up 1 percent on a currency-neutral basis versus the prior year.

"While we are encouraged by our progress, our fourth quarter results highlighted challenges that have led us to update our fiscal '25 outlook,” said Matthew Friend, the company’s executive vice president & CFO.

Review of Nike’s Q4 results

Revenues for the Nike brand were 12.1 billion dollars, down 1 percent on a reported basis and up 1 percent on a currency-neutral basis, with currency-neutral growth in Greater China, APLA and EMEA, partially offset by a decline in North America.

The company said in a statement that Nike direct revenues for the quarter were 5.1 billion dollars, down 8 percent on a reported basis and down 7 percent on a currency-neutral basis, due to declines in NIKE Brand Digital of 10 percent and NIKE-owned stores of 2 percent.

Wholesale revenues of 7.1 billion dollars, rose 5 percent on a reported basis and 8 percent on a currency-neutral basis.

The company added that revenues for Converse were 480 million dollars, down 18 percent on a reported basis and down 17 percent on a currency-neutral basis, primarily due to declines in North America and Western Europe.

Gross margin increased 110 basis points to 44.7 percent, while net income was 1.5 billion dollars, up 45 percent and diluted earnings per share were 99 cents for the fourth quarter.

In the fourth quarter, the company returned approximately 1.6 billion dollars to shareholders, including dividends of 560 million dollars, up 7 percent from prior year and share repurchases of 1 billion dollars.

Nike brand revenues decline in North America

Full year revenues for the Nike brand were 49.3 billion dollars, up 1 percent on a reported and currency-neutral basis, with currency-neutral growth in Greater China and APLA, partially offset by a decline in North America.

Nike direct revenues were 21.5 billion dollars, up 1 percent on a reported and currency-neutral basis, led by Nike-owned stores growth of 6 percent, partially offset by a decline in Nike brand digital of 3 percent.

Wholesale revenues for the year were 27.8 billion dollars, up 1 percent on a reported basis and up 2 percent on a currency-neutral basis.

Revenues for Converse were 2.1 billion dollars, down 14 percent on a reported basis and down 15 percent on a currency-neutral basis, primarily due to declines in North America and Western Europe.

Gross margin increased 110 basis points to 44.6 percent, net income was 5.7 billion dollars, up 12 percent, and diluted earnings per share were 3.73 dollars.

In fiscal 2024, the company returned around 6.4 billion dollars to shareholders, including dividends of 2.2 billion dollars, up 8 percent and share repurchases of 4.3 billion dollars.