Nike reported earnings last week. Revenue was $12.61B vs. $12.84B expected. Overall revenue declined 2% YoY and direct revenue dropped 8% YoY. EPS was $1.01 vs. $0.83 expected. The company also projected a 10% revenue decline for the current quarter and said they expected a mid-single digital decline of revenue for FY2025. NKE 0.00%↑ stock fell 20% after the report.
Nike’s numbers are very lackluster. The company basically has no growth. North American and Europe revenue declined YoY while Greater China’s top line growth went from 25% to 7%. Greater China’s FY2024 Q4 revenue of $1.863B was below the FY2021 Q4 revenue $1.933B. North America’s FY2024 Q4 revenue of $5.278B was also below the FY2021 Q4 revenue $5.384B. It appears Nike is going through an adjustment period after the pandemic boom. But to be fair, how much more revenue can we realistically expect Nike to grow when they are already selling ~$50B of sneakers and yoga pants per year?
