Nike (NKE) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue grew 1% currency-neutral to $51.4B, with Q4 revenue at $12.6B, down 2% reported and flat currency-neutral; EPS up 15% for the year and Q4 EPS at $0.99.

• Net income for Q4 was $1.5B, up 45% year-over-year; full-year net income was $5.7B, up 12%.

• Performance product saw strong double-digit growth, but lifestyle declines offset gains, especially impacting digital.

• Strategic shifts include leadership changes, accelerated innovation, and increased investment in consumer-facing activities.

• Fiscal 2025 is positioned as a transition year, with a focus on scaling newness and innovation.

Financial highlights

• Q4 revenue down 2% reported, flat currency-neutral; Nike Direct down 7-8%, Nike Digital down 10%, Wholesale up 5-8%.

• Gross margin expanded 110 bps to 44.7% in Q4 and 44.6% for the year, driven by pricing, lower freight, and supply chain efficiency.

• SG&A down 7% reported in Q4, with $40M in restructuring charges; full-year SG&A up 1% to $16.6B.

• Diluted EPS $0.99 in Q4 (or $1.01 excluding restructuring); full-year EPS $3.73 ($3.95 excluding restructuring), up 15%.

• Cash flow from operations $7.4B, up 27%; inventory down 11% year-over-year to $7.5B.

Outlook and guidance

• Fiscal 2025 reported revenue expected down mid-single digits, with first half down high single digits.

• Foreign exchange to be a 1-point headwind on revenue in FY25.

• Gross margin expected to expand 10-30 bps; SG&A to grow slightly as demand creation investment increases.

• Q1 revenue expected down ~10%, with gross margin in line with full-year guidance.

• Sequential improvement anticipated in the second half as new products scale.