Nike beat sales expectations for the fourth quarter and fiscal year 2023.
The athletic giant reported Q4 revenues were $12.8 billion, up 5 percent compared to 2022. This beat Nike’s previously issued guidance for Q4, which had revenues growing in the flat to low-single digits. It also came in ahead of analysts’ expectations of $12.59 billion in sales. Net income was down 28 percent to $1 billion, with diluted earnings per share of 66 cents, which was down 27 percent year-over-year. Analysts surveyed by Yahoo were looking for EPS of 67 cents for Q4.
Related Articles
For the full year, revenues were $51.2 billion, up 10 percent over the prior year. Nike had been aiming for full-year revenue to grow in the high-single digits, up from its prior guidance in the midsingle digits. Net income for the year was $5.1 billion, down 16 percent, with diluted earnings per share of $3.23, which was down 14 percent.
You May Also Like
Inventories, a key concern for analysts, were flat year-over-year for the period ending in May. The news comes as retailers such as Macy’s and DSW announce renewed wholesale partnerships with Nike as the brand looks to right-size inventory.
Nike’s gross margin took a hit in Q4 due to higher freight and logistics costs, more markdowns and foreign currency exchange headwinds.
Nike chief executive officer and president John Donahoe said in a statement that the company’s results were a testament to the Swoosh’s long-term strategy.
“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,” Donahoe said.
In Q4, Nike brand revenue grew 5 percent to $12.2 billion and Nike Direct revenues were up 15 percent to $5.5 billion. Q4 wholesale revenues were $6.7 billion, down 2 percent.
“We finished the year with mid-teens currency-neutral revenue growth and a healthy marketplace — setting the foundation for sustainable, profitable growth in FY24 and beyond,” said Nike executive vice president and chief financial officer Matthew Friend in a statement.