Nike posts Q4 revenue growth but net income down 28 percent

For the fourth quarter, Nike Inc. revenues were 12.8 billion dollars, up 5 percent and up 8 percent on a currency-neutral basis.

Net income for the quarter was 1 billion dollars, down 28 percent, and diluted earnings per share were 66 cents, down 27 percent.

“Nike’s strong results make clear that our strategy is working,” said John Donahoe, president & CEO, Nike, Inc., adding, “Our investment in innovation and our digital leadership are fueling broad-based growth across our portfolio of brands, as we create value by serving the future of sport.”

Review of Nike’s Q4 income statement

Revenues for the Nike brand were 12.2 billion dollars, up 5 percent on a reported basis and up 8 percent on a currency-neutral basis, with growth across all brands, channels and geographies.

Nike direct revenues were 5.5 billion dollars, up 15 percent and up 18 percent on a currency-neutral basis, led by Nike-owned stores growth of 24 percent and Nike brand digital growth of 14 percent.

Revenues for Converse were 586 million dollars, down 1 percent on a reported basis and up 1 percent on a currency-neutral basis, led by double-digit growth in Asia, offset by declines in Europe.

Gross margin decreased 140 basis points to 43.6 percent.

Highlights of FY23 results

Nike, Inc. reported full year revenues of 51.2 billion dollars, up 10 percent compared to prior year and up 16 percent on a currency-neutral basis.

Full year revenues for the Nike brand were 48.8 billion dollars, up 10 percent on a reported basis and up 16 percent on a currency-neutral basis, driven by double-digit growth across Nike direct and wholesale business.

Nike direct revenues were 21.3 billion dollars, up 14 percent on a reported basis and up 20 percent on a currency-neutral basis, led by Nike brand digital growth of 24 percent and Nike-owned stores growth of 14 percent.

Revenues for Converse were 2.4 billion dollars, up 3 percent on a reported basis and up 8 percent on a currency-neutral basis, led by double-digit growth in North America, partially offset by declines in Asia.

Gross margin decreased 250 basis points to 43.5 percent, net income was 5.1 billion dollars, down 16 percent, and diluted earnings per share were 3.23 dollars, down 14 percent compared to prior year.

In the fourth quarter, the company returned approximately 1.9 billion dollars to shareholders, including dividends of 524 million dollars, up 9 percent from prior year.

In fiscal 2023, the company returned approximately 7.5 billion dollars to shareholders, including dividends of 2 billion dollars, up 10 percent from prior year.