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Nike revenues drop

04/10/2024
In the first quarter, Nike reported a 10% decline in revenues to $11.6 billion, driven by softer performance across all geographies. Nike Direct revenues fell 13% to $4.7 billion, and wholesale revenues declined by 8% to $6.4 billion. Converse, Nike’s subsidiary, posted revenues of $501 million, down 15%.

Despite the revenue contraction, gross margin increased by 120 basis points to 45.4%. Selling and administrative expenses decreased by 2% to $4.0 billion, while demand creation expenses rose 15% to $1.2 billion due to investments in key sports events. Operating overhead expenses fell by 7%.

Earnings per share for the quarter were $0.70, a 26% decline from the prior year. Nike also announced Elliott Hill as the new President and CEO, effective 14th October 2024, and postponed its Investor Day. According to Matthew Friend, Nike’s Executive Vice President and Chief Financial Officer, the company’s first-quarter performance met expectations, with early signs of momentum in key sports and innovation efforts.
 

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