Nike saw sales nudge up in its third quarter results, as it pushed ahead to “return to strong growth”.
The sporting giant’s revenues beat expectations rising marginally to £9.6bn for the period ended 29 February, driven by growth across North America, Greater China, and APLA.
While in Europe, the Middle East and Africa, revenue fell 3% to £2.3bn
Nike Direct sales increased slightly to £4.3bn, while its brand digital revenues fell 3% on a reported basis and 4% on a currency-neutral basis.
Additionally, wholesale revenues jumped 3% to £5.2bn on a reported and currency-neutral basis.
The business saw its selling and administrative expense rise 7% to £3.3bn, including £270m of restructuring charges.
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Chief financial officer Matthew Friend reiterated the expectation that full-year fiscal 2024 revenue will be up about 1% but said the company forecasts a low single digit decline in revenue in the first half of fiscal 2025 as it adjusts its product lineup and deals with a weaker economic forecast.
“This reflects near-term headwinds from lifecycle management of our key product franchises, more than offsetting the scaling of new products, as we shift our product portfolio toward newness and innovation,” Friend said.
“This also continues to reflect the subdued macro outlook around the world.”
He also told investors the company was cutting back on supplies of “classic” shoes, including the company’s Air Force 1 sneakers, to focus on upcoming launches and new product development.
The brand’s president and CEO John Donahoe said: “We are making the necessary adjustments to drive Nike’s next chapter of growth.
“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.”
Nike executive vice president and chief financial officer Matthew Friend also said: “Our teams are focused on what matters most to return to strong growth. We are taking action to build a faster, more efficient Nike and maximize the impact of our new innovation cycle.”
Nike is banking heavily on the upcoming Summer Olympic Games, with multiple product launches and marketing campaigns in the pipeline for the event.
Donahoe added: “We’ve pulled forward several innovations more than a year, and our intent is to delight consumers and disrupt the industry.”
“Our brand storytelling will leverage our athletes and sport moments to become sharper and bolder, beginning with the Olympics this summer.”
Last month, Nike said it planned to cut nearly 2% of its total workforce in an effort to reduce costs after reporting “softer” sales in the second half of the year.
The move will see the sports giant axe 1,600 roles and is part of its wider plan of achieving £1.6bn in cost savings over the next three years.
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