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HomeNewsNike reports $1.5 billion in profit, but revenue misses expectations

Nike reports $1.5 billion in profit, but revenue misses expectations

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U.S. sportswear giant Nike reported an unexpected surge in profit in the fourth quarter of fiscal year 2023/2024. This news cheered investors, but their joy was tempered by a decline in revenue that fell short of expectations. The company is also forecasting a further decline in revenue in the first quarter of the next fiscal year.

NIKE’s Revenue:

MetricValueYoY Change
Net Income$1.50 billion (€1.40 billion)+45.6%
EPS99 cents+50.0%
Revenue$12.61 billion-1.7%
Revenue in North America$8.94 billion+9.0%
Revenue in Europe$3.22 billion-1.0%
Revenue in Greater China$0.45 billion-14.0%

Nike’s profit growth was driven by a $2 billion cost-cutting plan that includes job cuts. However, revenue was impacted by the strong dollar, which made overseas sales less favorable. The company saw a 14% decline in revenue in Greater China and a 1% decline in Western Europe. Conversely, revenue in North America grew by 9%.

Bottom Line – Nike Beat on Profits, Missed on Revenue

Nike managed to beat expectations on profits, but revenue fell short of targets. The company faces challenges from the strong dollar and ongoing lockdowns in China. Revenue is expected to decline in the first quarter of fiscal year 2024/2025.


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