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Nike (NKE), the world’s largest sportswear and sneaker retailer, exceeded market expectations with its quarterly performance.
Nike’s Q3 fiscal year 2024 (December-February) revenues were $12.43 billion (up 0.3% from the previous year), total sales profit was $5.56 billion (a 3.6% increase), and net income attributable to the controlling shareholder was $1.17 billion (a 5.5% decrease). Despite the high base, Nike outperformed the consensus. Sales showed $6.6 billion from wholesale and $5.4 billion from Nike Direct.
While Nike announced a quarterly performance that exceeded market expectations, it provided conservative guidance for the first half of 2025 (June-November).
Han Wi, a research analyst at NH Investment Securities, said, “The company is currently reorganizing its product portfolio around new innovative products to strengthen mid-to-long-term top-line growth.” He added, “This is a decision to strengthen the brand and pricing power.”
In this strategic transition, the company plans to downsize some of its lifestyle and performance franchise businesses to focus on launching new products.
Han Wi predicts that “the results of the renewal strategy of products will become visible as early as the second half of this year.” He anticipates a short-term flow in a box of the stock price due to lowered expectations for performance improvement.
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