- Nike‘s 1Q revenue: $11.59 billion, down 10% year-over-year, close to the estimate of $11.65 billion.
- North America revenue: $4.83 billion, down 11% year-over-year, just below the estimate of $4.84 billion.
- EMEA revenue: $3.14 billion, down 13% year-over-year, below the estimate of $3.27 billion.
- Greater China revenue: $1.67 billion, down 4% year-over-year, exceeding the estimate of $1.62 billion.
- Asia Pacific & Latin America revenue: $1.46 billion, down 7% year-over-year, slightly above the estimate of $1.45 billion.
- Global Brands revenue: $14 million, up 7.7% year-over-year, surpassing the estimate of $12.4 million.
- Converse revenue: $501 million, down 15% year-over-year, below the estimate of $523.1 million.
- Footwear revenue: $7.46 billion, down 11% year-over-year, just under the estimate of $7.53 billion.
- Apparel revenue: $3.03 billion, down 11% year-over-year, below the estimate of $3.09 billion.
- Equipment revenue: $603 million, up 14% year-over-year, exceeding the estimate of $505.6 million.
- Earnings per share (EPS): 70 cents, compared to 94 cents year-over-year.
- Gross margin: 45.4%, higher than both the previous year’s 44.2% and the estimate of 44.4%.
- North America EBIT: $1.22 billion, down 15% year-over-year, above the estimate of $1.11 billion.
- EMEA EBIT: $792 million, down 15% year-over-year, exceeding the estimate of $768.4 million.
- Greater China EBIT: $502 million, down 4.4% year-over-year, surpassing the estimate of $449 million.
- Asia Pacific & Latin America EBIT: $402 million, down 2.9% year-over-year, exceeding the estimate of $365.7 million.
- Inventory: $8.25 billion, down 5.1% year-over-year, slightly above the estimate of $8.12 billion.
- Cash and cash equivalents: $8.49 billion, up 37% year-over-year, above the estimate of $8.32 billion.
- Effective tax rate: 19.6%, higher than the previous year’s 12% and the estimate of 17.7%.
- Analyst recommendations: 22 buys, 20 holds, and 2 sells.
Nike on Smartkarma
Analyst coverage on Smartkarma reveals a bullish sentiment towards Nike. Baptista Research‘s analysis highlights the recent CEO transition at Nike, with Elliott Hill taking the reins from John Donahoe. Donahoe’s departure follows a period of strategic shifts towards direct-to-consumer sales but faced challenges with flat revenue growth. The company’s restructuring efforts amid evolving business challenges are under scrutiny, with the new leadership change seen as a significant development.
Furthermore, Pershing Square Capital Management’s bullish outlook on Nike suggests a potential reversal of the sportswear giant’s downslide. Despite recent macroeconomic headwinds, Bill Ackman’s fund disclosed a substantial stake in Nike, indicating confidence in the company’s long-term prospects. NIKE, Inc.’s focus on sport, product innovation, brand marketing, and market expansion through collaborations with partners are key drivers outlined in their Q3 2024 earnings, signaling a strategic path towards brand elevation and growth.
A look at Nike Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
NIKE, Inc., a renowned global athletic apparel brand, is positioned for a promising long-term outlook based on a comprehensive evaluation utilizing the Smartkarma Smart Scores. With a solid score for Resilience and above-average ratings for Dividend and Growth, Nike showcases stability and potential for sustained growth. The company’s momentum score aligns with its industry position, reflecting a steady performance trajectory. While there is room for improvement in the Value category, overall, Nike‘s outlook appears positive for the future.
As a leader in athletic footwear, apparel, and accessories, Nike‘s strategic focus on resilience, growth, and maintaining momentum bodes well for its long-term success. Leveraging its well-established global presence and diversified distribution channels, Nike continues to attract a wide range of customers across demographics. By emphasizing innovation and customer-centric strategies, Nike remains well-positioned to navigate challenges and capitalize on opportunities within the competitive athletic market landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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