American sportswear giant Nike's revenue reaches $13.4 bn in Q2 FY24

The Nike brand specifically contributed $12.9 billion, marking a 1 per cent increase over the prior year, although it remained flat on a currency-neutral basis. This stability is attributed to growth in the Asia Pacific and Latin America (APLA) and Greater China regions, which balanced out the declines in North America and the Europe, Middle East, and Africa (EMEA), the company said in a press release.

Converse, a subsidiary of Nike, experienced a decline with revenues of $519 million, dropping 11 per cent compared to the prior year and 13 per cent on a currency-neutral basis. This decrease was primarily due to lower sales in North America and Europe, despite growth in Asia.

The company's gross margin improved notably, increasing by 170 basis points to 44.6 per cent. This improvement was mainly driven by strategic pricing actions and lower ocean freight rates, although partially offset by unfavourable changes in net foreign currency exchange rates and increased product input costs.

Operating expenses showed a modest increase, with selling and administrative expenses rising 1 per cent to $4.1 billion. Demand creation expenses also increased by 1 per cent, reaching $1.1 billion, largely due to heightened marketing expenditures. Operating overhead expenses remained flat at $3 billion, as increases in Nike Direct variable costs were balanced by reductions in technology spend and wage-related expenses.

The company saw a significant 19 per cent increase in net income, which reached $1.6 billion. Diluted earnings per share also saw a notable rise, increasing 21 per cent to $1.03.

In terms of inventory, Nike, Inc reported a 14 per cent decrease to $8.0 billion, reflecting a reduction in unit volumes compared to the previous year.

“Our Q2 results demonstrated how we are getting back on our front foot in our key areas of innovation and growth,” said John Donahoe, president & CEO, NIKE. “This quarter showed strong execution by our team as we focus on our winning formula of innovative product, distinctive storytelling and differentiated marketplace experiences.”

Fibre2Fashion News Desk (DP)