VIRLANRevenue for Nike’s Q4 2023 came in at $12.7 billion, up 5% from the same period last year.
• Gross margins declined due to higher costs for freight, materials and wages. Gross margin was 44.3%, down 270 basis points.
• Net income for Q4 was $1.47 billion, down 22% from last year. Diluted earnings per share were $0.93, down 22%.
• North America delivered another quarter of growth, with revenue up 5%. However, EMEA and Greater China both saw declines in revenue of 4% and 16%, respectively.
• Revenue in Nike’s direct to consumer channels increased 8% for the quarter, helping to offset declines in the wholesale business.
• Nike’s inventory levels rose 33% to $9.7 billion due to shipping delays and cancellations. The company said it expects its inventory levels to remain elevated.
• For full fiscal 2023, Nike’s revenue increased 4% to $46.7 billion while earnings per share declined 4% to $3.75.
• Looking ahead, Nike said it expects revenue growth to slow in fiscal 2024 due to macroeconomic challenges and some continued impacts from Covid-19 lockdowns in China.
So in summary, while Nike’s growth is slowing due to economic headwinds, weakness in China and higher costs, the company’s direct-to-consumer channels and brand strength position it well for the long run. But inventory issues, slower growth and margin pressures are likely to persist in the near term.
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