Oregon, US – Nike has reported increased revenues in the first quarter of its 2024 financial year, which ended on 31 August. They were up to $12.9bn, an increase of 2% on the same quarter in the previous year. Net income of $1.5bn represented a fall of 1%.
However, the gross margin was down by 10 points to 44.2%. The decline was attributed by the company to higher product costs and currency effects, though these were largely offset, it said, by “strategic pricing actions”.
At Nike Direct, the quarter-on-quarter increase was 6%, rising to $5.4bn. Rises were more modest in digital sales, where the 2% rise was in line with overall group performance. Revenues were flat for its wholesale business, at $7bn.
Inventories were down by 10% at $8.7bn. This, it said, was primarily the result of a decrease in units, partially offset by product mix and higher product input costs.
“Q1 offered proof of what Nike can deliver when we connect great innovation, great storytelling and great marketplace experiences to consumers,” said John Donahoe, the company’s president & CEO. “Moving forward, we are laser-focused on scaling these successes with greater consistency and speed as we continue to integrate and streamline our business.”