Companies

Nike announces first quarter results

Oct 2, 2023 United States

The US-based sportswear giant reported an increase of 2% on both a reported and currency-neutral basis in the first quarter of fiscal 2024, as compared to the same period of last fiscal year

“Q1 offered proof of what NIKE can deliver when we connect great innovation, great storytelling and great marketplace experiences to consumers. Moving forward, we are laser-focused on scaling these successes with greater consistency and speed as we continue to integrate and streamline our business. This is how we’ll extend our leadership position and drive growth over the long term”, commented John Donahoe, President & CEO of Nike.

First Quarter Results

In the three months to the 31^st of August, the company's revenue grew by 2% on a reported and currency-neutral basis, on a comparable basis to the same period of fiscal 2023, reaching 12.9 billion US dollars.

The Nike brand recorded a 3% revenue increase on a reported and currency-neutral basis in the first quarter of the current fiscal year to 12.4 billion euros, as compared to a similar period of last fiscal year, mainly due to the performances in the EMEA, Greater China and APLA, which were partially offset by the one in North America.

In the same period, Converse's revenue totalled 588 million US dollars, down by 9% year-over-year on a reported and currency-neutral basis, mostly due to the decline recorded in North America.

In the first quarter of fiscal 2024, Nike's gross margin contracted by 10 basis points to 44.2% from the same period of the previous fiscal year, “primarily driven by higher product costs and unfavourable changes in net foreign currency exchange rates, largely offset by strategic pricing actions”.

At the end of August, the sportswear company recorded a 1.5 billion US dollars in net income, reflecting a decline of 1%, as compared to the same period of fiscal 2023; diluted earnings per share, however, increased by 1% to 0.94 US dollars.

Image Credits: harpersbazaar.com

United States Companies Footwear Nike Quarter Results Results Sportswear