Executive Summary
Nike reported QQ1 2024 revenue of $11.589 billion, marking a YoY decline of 10.4% and a QoQ decline of 8.1%. Gross margin remained resilient at approximately 45.36%, yielding a gross profit of $5.257 billion, while operating margin stood at 10.4% and net margin at 9.1%. Net income reached $1.051 billion with an EPS of $2.08, but operating cash flow swung negative to -$66 million and free cash flow was -$319 million, signaling working capital headwinds and a shift in cash generation dynamics despite solid profitability. Nike preserves a robust liquidity position with cash and short-term investments totaling roughly $8.79 billion and total debt of $12.18 billion, leaving a net debt of about $6.00 billion. The balance sheet remains solid, yet elevated leverage, working capital intensity, and a negative near-term operating cash flow highlight the need for disciplined capital allocation and improved cash generation going forward. The quarter underscores Nike’s ongoing need to balance revenue recovery with efficiency gains, selective investment (notably in direct-to-consumer channels and digital platforms), and cash flow restoration to support dividends and buybacks while maintaining strategic flexibility.
Key Performance Indicators
QoQ: -8.07% | YoY:-10.43%
QoQ: -21.80% | YoY:-24.63%
QoQ: -29.93% | YoY:-27.52%
QoQ: -29.97% | YoY:-27.02%
Key Insights
Revenue: $11.589B (YoY -10.4%, QoQ -8.1%). Gross Profit: $5.257B (YoY -8.1%, QoQ -6.7%). Operating Income: $1.209B (YoY -24.6%, QoQ -21.8%). Net Income: $1.051B (YoY -27.5%, QoQ -29.9%). EPS: $2.08 (YoY -27.0%, QoQ -30.0%). Gross Margin: ~45.36%. Operating Margin: ~10.43%. Net Margin: ~9.07%. EBITDA: $1.393B; EBITDA Margin: ~12.02%. Payout/Share activity: Dividends paid $524M; Share repurchases $1.133B (net). Cash conversion: Net cash provided by operating activities -$66M; Free Cash Flow -$319M...
Financial Highlights
Revenue: $11.589B (YoY -10.4%, QoQ -8.1%). Gross Profit: $5.257B (YoY -8.1%, QoQ -6.7%). Operating Income: $1.209B (YoY -24.6%, QoQ -21.8%). Net Income: $1.051B (YoY -27.5%, QoQ -29.9%). EPS: $2.08 (YoY -27.0%, QoQ -30.0%). Gross Margin: ~45.36%. Operating Margin: ~10.43%. Net Margin: ~9.07%. EBITDA: $1.393B; EBITDA Margin: ~12.02%. Payout/Share activity: Dividends paid $524M; Share repurchases $1.133B (net). Cash conversion: Net cash provided by operating activities -$66M; Free Cash Flow -$319M. Cash at end of period: $6.178B. Total debt: $12.177B; Net debt: $5.999B. Current ratio: 2.36; Quick ratio: 1.58; Cash ratio: 0.80. DSO: 37 days; Days Inventory Outstanding: 117.3 days; CCC: 154.3 days. Valuation snapshot (local market): P/E 1.14, P/BV 0.34, P/S 0.41, Dividend Yield 0.12%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.59B |
-10.43% |
-8.07% |
| Gross Profit |
5.26B |
-8.09% |
-6.69% |
| Operating Income |
1.21B |
-24.63% |
-21.80% |
| Net Income |
1.05B |
-27.52% |
-29.93% |
| EPS |
2.08 |
-27.02% |
-29.97% |
Key Financial Ratios
operatingProfitMargin
10.4%
operatingCashFlowPerShare
$0.78
freeCashFlowPerShare
$0.54
dividendPayoutRatio
53.1%
Management Commentary
No earnings call transcript was provided in the data set for QQ1 2024. As a result, transcript-based themes, management tone, and precise quotes could not be extracted. The quantitative results imply a focus area around demand softness versus margin resilience, cost controls, and cash flow dynamics, which analysts typically corroborate via management commentary on inventory levels, DTC acceleration, and channel mix.
Forward Guidance
No formal forward guidance was presented in the provided data. Based on the QQ1 2024 results, the near-term trajectory will hinge on: (1) stabilization or recovery of consumer demand across key geographies, (2) successful execution of direct-to-consumer and digital initiatives to offset wholesale weakness, (3) inventory and working capital management to restore operating cash flow and free cash flow generation, and (4) currency and input-cost dynamics affecting gross margins. Management commentary typically accompanies guidance; in its absence, investors should monitor Nike’s progression in DTC penetration, inventory days, sell-through velocity, and any cost-reduction or productivity programs intended to drive margin expansion. Potential targets to watch include improving operating cash flow into positive territory, reduction of working capital intensity, and sustaining gross margins in the mid-40s despite a softer revenue base.