NKE - Nike Q4 revenue disappoints again
2024-06-27 16:23:32 ET
Nike Inc (NYSE: NKE) is losing in extended hours on Thursday after coming in shy of Street estimates for its fourth financial quarter.
Shares of the footwear giant are still down close to 15% versus the start of 2024.
Notable figures in Nike Q4 earnings release
- Earned $1.5 billion versus the year-ago $1.03 billion
- Per-share earnings also improved from 66 cents to 99 cents
- Adjusted EPS printed at $1.01 as per the earnings report
- Revenue inched down 2.0% year-over-year to $12.6 billion
- Consensus was 84 cents a share on $12.86 billion in revenue
Nike reported a 110 basis points increase in gross margin to 44.7% for the fourth quarter. John Donahoe – its chief executive said in a press release on Thursday:
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.
shareholder returns and balance sheet
In May, Nike announced a cash dividend of 37 cents per share. It spent a total of $1.0 billion on buying back stock in the fourth quarter. According to Matthew Friend – the chief financial officer of :
We are taking actions to reposition NIKE to be more competitive, and to drive sustainable, profitable long-term growth.
Nike ended its Q4 with $11.6 billion of cash including cash equivalents and short-term investments – up some $900 million versus a year ago. Inventories at $7.5 billion were down 11% compared to same quarter of 2023.
Note that Nike stock traded at a high of $177 during the COVID pandemic.
This is a developing story. Check back in a few minutes for more updates!
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