US sporting goods supplier Nike Inc. reported mixed figures for the third quarter of the 2023/24 financial year, with results slightly surpassing analysts' expectations. CEO John Donahoe acknowledged that while the figures aligned with management's forecasts, they did not fully reflect Nike's potential. As a result, the company plans to make further adjustments in marketing, product portfolio, and wholesale distribution.
During the three months leading up to 29 February, Nike's group turnover reached approximately $12.4 billion, marking a 0.3 percent increase compared to the same quarter the previous year. Even after adjusting for exchange rate fluctuations, there was a slight uptick. The primary brand, Nike, contributed the majority of revenue, with sales rising by 2 percent to $11.9 billion. In North America, Nike saw a 3 percent increase to $5.07 billion, and in Greater China, a 5 percent rise to $2.08 billion. Sales in the Asia-Pacific region and Latin America totaled $1.65 billion, up by 3 percent. However, the EMEA region experienced a decline, with sales dropping by 3 percent to $3.14 billion.
Conversely, sales of the subsidiary brand Converse decreased by 19 percent to $495 million, primarily due to losses in North America and Europe. Despite an increase in gross margin, the company faced restructuring expenses and higher marketing costs, leading to a 5 percent decrease in net profit to $1.17 billion compared to the same period last year. In the first nine months of the financial year, Nike's turnover reached nearly $38.8 billion, a 1 percent increase from the previous year, with net profit rising by 4 percent to $4.20 billion.
CFO Matt Friend indicated that the company anticipates a slight turnover increase in the final quarter. However, in the first half of the upcoming 2024/25 financial year, sales are projected to decline by a low single-digit percentage due to planned product range adjustments and ongoing economic challenges.
These developments were originally reported on FashionUnited.DE and have been translated and edited for clarity.
