Nike’s China sales continued to slow during its holiday quarter, but the retailer beat estimates on the top and bottom line, thanks to better than expected growth in North America and price changes. Here’s a breakdown of Nike’s performance in its fiscal 2024 third quarter compared with Wall Street expectations.
Earnings per share: 77 cents vs. 74 cents expected
Revenue: $12.43 billion vs. $12.28 billion expected
Nike reported a net income of $1.17 billion for the three-month period ending Feb. 29, or 77 cents per share, compared to $1.24 billion, or 79 cents per share, a year earlier. Excluding restructuring charges, earnings per share would have been 98 cents.
Sales rose to $12.43 billion, up slightly from $12.39 billion a year earlier. In North America, sales rose about 3% to $5.07 billion, exceeding estimates. However, sales in China were slightly below expectations, reaching $2.08 billion, while sales in Europe, the Middle East, and Africa fell below estimates.
Following the release of its earnings report, Nike shares initially rose but later dropped after the company provided guidance for the current quarter and fiscal 2025. Nike reiterated its sales outlook for fiscal 2024 and expects revenue to grow 1%. For the current quarter, it anticipates slightly higher revenue.
Nike is focusing on cost-cutting measures and becoming more efficient to drive profits and protect margins. The company recently announced a restructuring plan to reduce costs by $2 billion over three years and cut 2% of its workforce.
Despite challenges in the market, Nike remains a leader in the sneaker and apparel space. The company is working to innovate and compete with newer entrants while maintaining its market share.
As Nike navigates the changing landscape of the retail industry, analysts are eager to see how the company will adapt and grow in the coming years. Stay tuned to see how Nike continues to evolve in the competitive market. Read the full earnings release here.
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