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Nike reported quarterly results that exceeded analysts’ expectations in terms of earnings per share

Autor: Tiberiu Porojan
2 min

NIKE, Inc. (NYSE:NKE) yesterday reported fiscal 2024 financial results for its first quarter ending 31 august that were above analysts’ expectations.

Revenues for NIKE, Inc. increased 2 percent to $12.9 billion compared to the prior year. Revenues for the NIKE Brand were $12.4 billion, up 3 percent, led by currency-neutral growth in EMEA, Greater China and APLA (Asia Pacific latin America), partially offset by a decline in North America.

Revenues for Converse were $588 million, down 9 percent, due to a decline in North America, partially offset by growth in Asia. Gross margin decreased 10 basis points to 44.2 percent, primarily driven by higher product costs and unfavorable changes in net foreign currency exchange rates, largely offset by strategic pricing actions.
Selling and administrative expense increased 5 percent to $4.1 billion while demand creation expense was $1.1 billion, up 13 percent, primarily due to advertising and marketing expense.

Operating overhead expense increased 2 percent to $3.0 billion, primarily due to wagerelated expenses and NIKE Direct variable costs, partially offset by lower technology spend.

Net income was $1.5 billion, down 1 percent, and Diluted earnings per share was $0.94, increasing 1 percent. Inventories for NIKE, Inc. were $8.7 billion, down 10 percent compared to the prior year, primarily driven by a decrease in units, partially offset by product mix and higher product input costs. Cash and equivalents and short-term investments were $8.8 billion, down approximately $3.1 billion from last year, as cash generated by operations was more than offset by share repurchases, cash dividends and capital expenditures.

During the quarter, NIKE returned approximately $1.7 billion to shareholders, including dividends of $524 million, up 9 percent from the prior year and share repurchases of $1.1 billion, reflecting 10.5 million shares retired as part of the company’s four-year, $18 billion program approved by the Board of Directors in June 2022.

As of August 31, 2023, a total of 54 million shares have been repurchased under the program for a total of approximately $5.9 billion.