Converse, a subsidiary of Nike faced a tougher quarter, with revenues dropping to $495 million. This represents a 19 per cent decline on a reported basis and a 20 per cent fall on a currency-neutral basis, with the brand particularly hit by decreased sales in North America and Europe, Nike said in a press release.
Nike reported a modest revenue rise in Q3 FY24 to $12.4 billion, with a 2 per cent rise in Nike brand revenues.
Converse faced a 19 per cent drop to $495 million, primarily in North America and Europe.
Gross margin improved to 44.8 per cent, but net income fell by 5 per cent to $1.2 billion, and EPS decreased to $0.77.
Inventories declined by 13 per cent.
Nike reported a gross margin increase of 150 basis points, bringing it to 44.8 per cent. However, selling and administrative expenses saw a 7 per cent rise, totalling $4.2 billion for the quarter, indicating increased operational costs.
Net income for the period was $1.2 billion, marking a 5 per cent decrease from previous figures, while diluted earnings per share also fell by 3 per cent to $0.77. The company reported a 13 per cent decrease in inventories, totalling $7.7 billion, which reflects a reduction in units compared to the previous year.
“We are making the necessary adjustments to drive Nike’s next chapter of growth,” said John Donahoe, president and CEO, Nike. “We’re encouraged by the progress we’ve seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace.”
Fibre2Fashion News Desk (DP)
