Nike lowers outlook as annual sales decline

Nike has lowered its outlook after reporting a 1% drop in revenue to £40.6 billion ($51.4 billion) for the full-year ending 31 May 2024.

The global sportswear giant saw revenue for the Nike brand rise 1% to £39 billion ($49.3 billion), with growth in Greater China and APLA partially offset by a decline in North America.

Meanwhile, revenue for Converse dropped 14% to £1.6 billion ($2.1 billion), due to declines in North America and Western Europe.

The company's direct-to-consumer revenue increased 1% to £17 billion ($21.5 billion), led by Nike-owned store growth of 6%, partially offset by a 3% decline in the brand's digital revenues. Wholesale revenues were also up 1% to £22 million ($27.8 billion).

Gross margin increased 110 basis points to 44.6% during the year, helped by strategic pricing actions and lower ocean freight rates and logistics costs, while the firm's annual net income lifted 12%.

John Donahoe, President and CEO of Nike, said: "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.

"I'm confident that our teams are lining up our competitive advantages to create greater impact for our business."

Matthew Friend, Executive Vice President and CFO at Nike, added: "We are driving better balance across our portfolio. While we are encouraged by our progress, our fourth quarter results highlighted challenges that have led us to update our Fiscal '25 outlook.

"We are taking actions to reposition Nike to be more competitive, and to drive sustainable, profitable long-term growth."