Home NEWS Nike reports a modest increase in revenue to $12.4 billion in the...

Nike reports a modest increase in revenue to $12.4 billion in the third quarter of fiscal year 2024.

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The US-based company has announced a marginal uptick in revenue for the third quarter of fiscal 2024 compared to the corresponding period of the previous fiscal year, both on a reported and currency basis.

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.”

During the quarter ending on February 29th, the sportswear giant’s revenue reached $12.42 billion, marking a marginal increase from $12.39 billion recorded in the same period of fiscal 2023, on both reported and currency-neutral bases.

While revenue from the Nike brand rose by 2% to $11.9 billion in the third quarter, both on reported and currency-neutral bases, revenue from the Converse brand witnessed a decline of 19% on a reported basis and 20% on a currency-neutral basis compared to the previous year’s third quarter.

Nike’s gross margin for the third quarter of fiscal 2024 saw a notable improvement of 150 basis points, reaching 44.8% from the same quarter of the preceding fiscal year. This improvement was attributed primarily to strategic pricing measures and reduced ocean freight and logistics costs, offset in part by higher product input costs and restructuring charges.

The company’s net income for the third quarter amounted to $1.17 billion, reflecting a 5% decrease compared to the $1.24 billion recorded in the same period last year on a comparable basis. Diluted earnings per share stood at $0.77, down by 3% from $0.79 in the third quarter of the previous year.