American sports apparel brand NIKE has announced a 12% increase in net income for the fiscal year 2024 (FY24), reaching $5.70bn, up from $5.07bn in the previous year.
The company’s diluted earnings per share also rose by 15% to $3.73 over the year.
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For the year ending 31 May 2024, Nike’s revenues were $51.36bn, a 1% increase on a currency-neutral basis compared to $51.21bn in FY23.
The Nike brand itself generated $49.3bn in revenue in FY24, up 1% from the previous year on both reported and currency-neutral basis.
Revenues of Nike Direct also saw a modest increase of 1% to $21.5bn, with growth in Nike-owned stores of 6%, although this was partially offset by a 3% decline in Nike digital sales.
The company’s gross profit for fiscal 2024 was $22.88bn, a 3% increase from $22.29bn in fiscal 2023.
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By GlobalDataIts gross margin improved by 110 basis points (bps) to 44.6%, driven by strategic pricing, reduced ocean freight rates and lower logistics costs.
Nike’s selling and administrative expenses inched up by 1% to $16.57bn in FY24, which included $379m in restructuring charges.
In the fourth quarter alone, Nike’s net income surged by 45% to $1.50bn, and diluted earnings per share increased by 50% to $0.99.
The company’s revenues dipped by 2% to $12.60bn over the quarter, but gross profit for the quarter improved by 1% to $5.63bn.
Gross margin for the quarter also rose by 110bps to 44.7%.
Nike president and CEO John Donahoe said: “We are taking our near-term challenges head-on while making continued progress in the areas that matter most to Nike’s future – serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace.
“I’m confident that our teams are lining up our competitive advantages to create greater impact for our business.”
In April 2024, Nike announced plans to lay off 740 employees at its Oregon headquarters in the US.
