Nike, Inc. (NYSE:NKE) reported its financial results for the fiscal 2024 fourth quarter and full year ended May 31, 2024. The company's full-year revenues were $51.4 billion, up 1 percent on a currency-neutral basis from the previous year's $51.2 billion. However, fourth-quarter revenues were $12.6 billion, showing a 2 percent decline on a reported basis and remaining flat on a currency-neutral basis.
Nike's gross margin for the fourth quarter increased by 110 basis points to 44.7 percent, driven by strategic pricing actions, lower ocean freight rates, and logistics costs. However, diluted earnings per share for the fourth quarter were reported at $0.99.
The company's revenues for the Nike brand in the fourth quarter were $12.1 billion, down 1 percent on a reported basis, but up 1 percent on a currency-neutral basis. Nike direct revenues were $5.1 billion, down 8 percent on a reported basis, with a 7 percent decline on a currency-neutral basis.
For the fiscal year, revenues for the Nike brand were $49.3 billion, marking a 1 percent increase on both a reported and currency-neutral basis. Nike direct revenues were $21.5 billion, up 1 percent on a reported and currency-neutral basis. Meanwhile, wholesale revenues were $27.8 billion, up 1 percent on a reported basis and 2 percent on a currency-neutral basis.
Nike's net income for the fourth quarter was $1.5 billion, up 45 percent, and diluted earnings per share were $0.99. Excluding restructuring charges, diluted earnings per share would have been $1.01. For the fiscal year, net income was $5.7 billion, a 12 percent increase, and diluted earnings per share were $3.73. Excluding restructuring charges, diluted earnings per share would have been $3.95.
Inventories for Nike were $7.5 billion, down 11 percent compared to the prior year, reflecting a decrease in units. Cash and equivalents and short-term investments were $11.6 billion, up $0.9 billion from the previous year.
The company continued to enhance shareholder returns, with dividends of $560 million in the fourth quarter, up 7 percent from the previous year, and share repurchases of $1.0 billion. In fiscal 2024, Nike returned approximately $6.4 billion to shareholders, including dividends of $2.2 billion and share repurchases of $4.3 billion.
Nike, Inc. has demonstrated a strong financial performance, but challenges in the fourth quarter have led the company to update its fiscal '25 outlook. The management remains committed to taking actions to reposition Nike to be more competitive and drive sustainable, profitable long-term growth. Today the company's shares have moved 0.1% to a price of $94.19. For more information, read the company's full 8-K submission here.
