Nike slashes revenue by 10% in first fiscal quarter, withdraws full-year forecast


10/02/2024

In its fiscal first quarter, the US sports equipment manufacturer Nike Inc. decreased its net income by 28% and lowered revenue by 10%, surpassing market predictions for net income while falling short of analysts' expectations for revenue.



Phillip Pessar
According to the company’s press release, the net income for the quarter ending on Aug. 31 was $1.05 billion, down from $1.45 billion in the same period of the prior fiscal year. Profit per share dropped to 70 cents from 94 cents.

The company experienced a decline in quarterly revenue from $12.94 billion to $11.59 billion compared to the previous year.

On average, experts surveyed by FactSet predicted that Nike would have a net income of 52 cents per share with revenue totaling $11.64 billion.

Matthew Friend, the Chief Financial Officer, announced that the company will no longer provide a long-term outlook and will only offer quarterly forecasts for the remainder of the fiscal year. There is an anticipated 8-10% decrease in revenue for the second quarter of the fiscal year.

Gross profit margin rose to 45.4% in the last quarter compared to 44.2% the previous year, driven by decreased manufacturing, warehousing, and logistics expenses, along with increased pricing.

source: bloomberg.com