Nike posts steep revenue decline ahead of CEO transition

For the first quarter, Nike revenues of 11.6 billion dollars, were down 10 percent on a reported basis and 9 percent on a currency-neutral basis.

On September 19, 2024, Nike’s board of directors appointed Elliott Hill as president and CEO of the company, effective October 14, 2024.

"Nike's first quarter results largely met our expectations. A comeback at this scale takes time, but we see early wins — from momentum in key sports to accelerating our pace of newness and innovation," said Matthew Friend, executive vice president and CFO, Nike, Inc.

Nike Q1 revenues decline across brands

Nike brand revenues of 11.1 billion dollars, declined by 10 percent on a reported basis and 9 percent on a currency-neutral basis, due to declines across all geographies.

Revenues for Converse were 501 million dollars, down 15 percent on a reported basis and down 14 percent on a currency-neutral basis, due to declines across all territories.

Nike direct revenues were 4.7 billion dollars, down 13 percent on a reported basis and 12 percent on a currency-neutral basis.

Wholesale revenues were 6.4 billion dollars, down 8 percent on a reported basis and down 7 percent on a currency-neutral basis.

Gross margin for the quarter increased 120 basis points to 45.4 percent. Net income was 1.1 billion dollars, down 28 percent and diluted earnings per share were 70 cents for the first quarter, down 26 percent.

In the first quarter, Nike returned approximately 1.8 billion dollars to shareholders, including dividends of 558 million dollars, up 6 percent from the prior year.