Nike keeps up “business momentum” in Q1

Nike has published its finances for the first quarter of fiscal 2024, revealing revenues were up by 2% year-on-year to £10.5 billion ($12.9 billion).

For the first quarter, ending 31 August 2023, revenues for the Nike brand were up by 3% to £10.1 billion ($12.4 billion) and Converse was down by 9% to £480 million ($588 million). Converse’s dip was due to a decline in North America, partially offset by growth in Asia.

Nike Direct revenues were £4.4 billion ($5.4 billion), up by 6% compared to the year prior and Nike brand digital sales increased by 2%. Wholesale revenues remained flat at £5.7 billion ($7 billion), while the gross margin decreased 10 basis points to 44.2%. Diluted earnings per share were up by 1% to £0.76 ($0.94) for the first quarter.

John Donahoe, President and CEO at Nike, commented: "Q1 offered proof of what Nike can deliver when we connect great innovation, great storytelling and great marketplace experiences to consumers.

"Moving forward, we are laser-focused on scaling these successes with greater consistency and speed as we continue to integrate and streamline our business. This is how we’ll extend our leadership position and drive growth over the long term."

Matthew Friend, Executive Vice President and Chief Financial Officer at Nike, added: "Our first-quarter results demonstrated the impact of staying on the offence over the past fiscal year. With a healthy marketplace and another quarter of brand and business momentum, we are strengthening our foundation for sustainable, profitable, long-term growth."