NIKE, Inc. (NYSE: NKE) reported revenues of $13.4 billion for the second quarter of 2024, up 1% on a reported basis and down 1% on a currency-neutral basis compared to the same period last year.
Net income was $1.6 billion, up 19%, and EPS was $1.03, up 21%, from last year.
Earnings beat estimates while revenue fell short.
Cash and equivalents and short-term investments were $9.9 billion at the end of the quarter.
“NIKE’s second-quarter financial performance was a turning point in driving more profitable growth. As we look ahead to a softer second-half revenue outlook, we remain focused on strong gross margin execution and disciplined cost management.” – Matthew Friend, CFO
The stock was down over 11% during premarket hours on Friday.
Prior performance
Nike (NKE) has been a powerhouse in the athletic apparel industry for decades. Known for its innovative designs and iconic “swoosh” logo, the company has consistently delivered strong financial performances quarter after quarter. As the end of the second quarter of fiscal year 2024 approaches, investors and analysts eagerly await to see if Nike will continue this trend. In this article, we will take a closer look at Nike’s 2Q24 earnings and highlight the must-know figures for investors and consumers alike.
Key figures from Nike’s 2Q24 earnings:
– Revenue: Nike’s total revenue for the second quarter of fiscal year 2024 was reported at $12.95 billion, a 15% increase from the same period last year. This surpassed analysts’ expectations of $12.44 billion, showcasing the company’s continued growth and strong performance.
– Earnings per share (EPS): Nike’s diluted EPS for 2Q24 was reported at $1.02, a 19% increase from the same period last year. This is also higher than analysts’ expectations of $0.89 per share.
– Digital sales: Digital sales, which include online sales as well as sales through Nike’s mobile apps, rose 41% in the second quarter, contributing greatly to the company’s overall revenue growth. This is a significant increase from the previous quarter’s growth of 30% and highlights Nike’s successful shift towards digital sales.
– China sales: Nike’s sales in China, a key market for the company, also saw significant growth in the second quarter. Revenue in Greater China increased by 36%, surpassing Nike’s sales in North America.
– Gross margin: Nike’s gross margin for 2Q24 was reported at 45.5%, a slight decline from the previous year’s margin of 45.9%. This decline can be attributed to increased supply chain and logistics costs.
– Future orders: Nike also reported an 11% increase in future orders, a key metric that reflects demand for the company’s products. This is a promising sign for the company’s future revenue and growth.
Benefits and practical tips:
For investors, Nike’s strong second quarter earnings may be an indication of long-term growth potential. With continued growth in digital sales and a thriving market in China, Nike’s financial performance is expected to remain strong for years to come. Consider adding Nike to your investment portfolio for potential returns.
For consumers, Nike’s strong earnings may mean continued innovation and expansion of product offerings. With a growing focus on digital sales, shopping for Nike products is becoming more convenient than ever. Keep an eye out for new designs and releases from the company.
Case study:
One of the main factors contributing to Nike’s success in the second quarter was its strong direct-to-consumer (DTC) strategy. By selling products directly to consumers through its own stores and online channels, Nike is able to cut out middlemen and maintain control over pricing and distribution. This has resulted in higher profit margins and increased sales for the company.
First-hand experience:
As a Nike customer, I can attest to the company’s strong performance in the second quarter. Not only have I noticed an increase in digital sales and promotions, but also an expansion of product offerings. Nike’s renewed focus on sustainability and social responsibility has also influenced my purchasing decisions and is a factor that sets the brand apart from its competitors.
Overall, Nike’s 2Q24 earnings reaffirm the company’s strong position in the athletic apparel industry and its ability to adapt to changing consumer behavior. In addition to its financial success, Nike’s commitment to sustainability and social responsibility is also worth noting. As the company continues to innovate and expand, it is undoubtedly a top contender in the market.
Tips for investors:
– Keep an eye on Nike’s digital sales and expansion in the Chinese market, as these are key drivers of the company’s growth.
– Monitor future orders to gauge consumer demand for Nike’s products.
- Stay informed on the company’s sustainability efforts and how it impacts consumer perception and purchasing decisions.
In conclusion, Nike’s 2Q24 earnings showcase the company’s continued strong performance, exceeding expectations in revenue and earnings. With a focus on digital sales and growth in China, Nike is well-positioned for long-term success. For consumers, this means a wider range of products and a seamless shopping experience. For investors, it may be a promising opportunity for potential returns. As Nike continues to push the boundaries of innovation and sustainability, it is clear that the company is not just a leader in the athletic apparel industry but also a driving force for change.
