American multinational sportswear firm Nike, Inc has reported a slight year-on-year (YoY) increase in revenues in the third quarter of fiscal 2024 (Q3 FY24), reaching $12.4 billion, with both reported and currency-neutral figures showing modest growth. The company witnessed a 2 per cent increase in Nike brand revenues, amounting to $11.9 billion, attributed to currency-neutral growth across North America, Greater China, and the Asia Pacific and Latin America (APLA) region, which was somewhat dampened by revenue declines in the Europe, Middle East, and Africa (EMEA) territories.

Converse, a subsidiary of Nike faced a tougher quarter, with revenues dropping to $495 million. This represents a 19 per cent decline on a reported basis and a 20 per cent fall on a currency-neutral basis, with the brand particularly hit by decreased sales in North America and Europe, Nike said in a press release.

Nike reported a gross margin increase of 150 basis points, bringing it to 44.8 per cent. However, selling and administrative expenses saw a 7 per cent rise, totalling $4.2 billion for the quarter, indicating increased operational costs.

Net income for the period was $1.2 billion, marking a 5 per cent decrease from previous figures, while diluted earnings per share also fell by 3 per cent to $0.77. The company reported a 13 per cent decrease in inventories, totalling $7.7 billion, which reflects a reduction in units compared to the previous year.

“We are making the necessary adjustments to drive Nike’s next chapter of growth,” said John Donahoe, president and CEO, Nike. “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.”

Fibre2Fashion News Desk (DP)

Disclaimer - All News/Articles items are subject to copyright and no article either in full or part may be reproduced in any form without permission from Fibre2Fashion Pvt. Ltd.