The Future of Nike: A Look at Q4 FY 2024 Earnings and Beyond
Key Takeaways
- Nike reports fourth-quarter earnings after markets close Thursday, June 27.
- Analysts expect Nike to post higher quarterly sales and profit from the same time last year, but the company said in March that it projects a low-single-digit revenue decline in the first half of fiscal 2025.
- Nike is also looking ahead to the Summer Olympics that start next month, as it hopes product launches and marketing campaigns will boost sales.
Nike, the athletic apparel giant, is gearing up to report its earnings for the fourth quarter of fiscal 2024. Analysts are expecting positive results, with higher sales and profits compared to the same period last year. The company is also looking forward to upcoming opportunities, such as the Summer Olympics next month, to drive its business forward.
In the upcoming earnings report, analysts project Nike to post a net income of $1.28 billion, or 84 cents per share, on $12.9 billion in revenue. This would mark an increase from the previous year’s figures of $1.03 billion in profit and $12.83 billion in revenue for the fourth quarter.
| Analysts’ Estimates for Q4 2024 | Q3 2024 | Q4 2023 | |
| Revenue | $12.9 billion | $12.43 billion | $12.83 billion |
| Diluted EPS | 84 cents | 77 cents | 66 cents |
| Net Income | $1.28 billion | $1.17 billion | $1.03 billion |
Key Metric: Fiscal 2025 Guidance
Analysts believe that Nike’s fourth-quarter earnings may not have a significant impact on its stock price as the results are expected to align with consensus estimates. The company has already provided some guidance for fiscal 2025 during its third-quarter earnings call.
Chief Financial Officer Matthew Friend stated in the call that Nike anticipates a low-single-digit revenue decline in the first half of fiscal 2025. This projection is attributed to Nike’s strategic shift towards new and innovative products, as well as a subdued global economic outlook.
In the second-quarter earnings report last December, Nike highlighted challenges from macroeconomic headwinds in regions like Europe, the Middle East, Africa, and Greater China. The company announced plans to cut costs by $2 billion over the next three years to address these challenges.
Business Spotlight: Olympics, Coming Product Launches
Nike is a prominent brand associated with the Olympics every four years, with its logo featured on uniforms and shoes across various events. The company plans to increase marketing spending during this year’s Summer Olympics to drive sales.
Key retail partners of Nike, such as Foot Locker and Dick’s Sporting Goods, have expressed optimism about upcoming product launches and innovations from the brand. Executives from these companies have noted that Nike is poised for growth and exciting developments in the consumer market.
Despite facing challenges in recent quarters, Nike remains focused on expanding its product portfolio and driving innovation to capture market opportunities.
In conclusion, Nike’s upcoming earnings report for Q4 FY 2024 presents an opportunity for investors and analysts to assess the company’s performance and future outlook. With a strategic focus on new products and marketing initiatives, Nike aims to navigate challenges and capitalize on growth opportunities in the athletic apparel industry.
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