Nike, the US-based sportswear giant, has announced a modest uptick in revenue for the third quarter of fiscal 2024, both on reported and currency-neutral bases, compared to the corresponding period of the previous fiscal year.
John Donahoe, President & CEO of Nike, expressed optimism about the company’s trajectory, stating, “We are making the necessary adjustments to drive Nike’s next chapter of growth. We’re encouraged by the progress we’ve seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace.”
In the quarter ending on February 29th, Nike reported a revenue of 12.42 billion US dollars, showing a marginal increase from the 12.39 billion US dollars recorded in the same period of fiscal 2023.
The revenue of Nike’s core brand witnessed a 2% rise to 11.9 billion US dollars in the third quarter on both reported and currency-neutral bases. However, revenue from its Converse brand experienced a setback, declining by 19% on reported basis and 20% on currency-neutral basis compared to the previous year’s third quarter.
Nike also saw an improvement in its gross margin, which increased by 150 basis points to 44.8% in the third quarter of fiscal 2024 compared to the same quarter of the preceding fiscal year. This improvement was attributed primarily to strategic pricing actions and reduced ocean freight and logistics costs, offset in part by higher product input costs and restructuring charges.
Despite the revenue increase, Nike’s net income for the third quarter stood at 1.17 billion US dollars, marking a 5% decrease on a comparable basis compared to the 1.24 billion US dollars recorded in the same period last year. Diluted earnings per share were reported at 0.77 US dollars, reflecting a 3% decline from 0.79 US dollars in the third quarter of the previous year.
