Nike (NKE) Q4 2023 earnings summary

Executive summary

• FY23 revenue reached $51.217B, up 10% reported and 16% currency-neutral; growth spanned regions, consumer groups and brands. Inventory returned to healthy levels ahead of the competition.

• Innovation and consumer connection supported growth, with product launches across football, basketball and running; membership engagement increased in frequency, spending and loyalty.

Financial highlights

• Revenue was $51.217B, up 10% reported and 16% currency-neutral; NIKE Direct revenue grew 14% to $21.3B.

• Net income fell 16% to $5.070B and diluted EPS fell 14% to $3.23; EBIT declined 10% to $6.195B.

• Gross margin contracted 250 bps to 43.5%; higher product costs, markdowns and unfavorable FX weighed on results, partly offset by strategic pricing.

• Operating cash flow increased to $5.841B from $5.188B; inventories were $8.454B, roughly flat YoY.

Outlook and guidance

• FY24 operating conditions could remain volatile; worsening macroeconomic conditions may materially affect revenue growth and profitability.

• Long-term priorities include extending leadership and growth through innovation, consumer connection and digital capabilities.

• The CASA shift to a distributor model is expected to reduce consolidated and APLA revenue growth under different commercial terms, while supporting profitability over time through lower selling and administrative expense and reduced FX exposure.