Executive Summary
Nike posted Q3 2024 results on the Buenos Aires listing (NKE.BA) featuring a revenue decline and meaningful margin compression, alongside resilient cash generation and an active capital-allocation program. Revenue reached $11.269 billion (USD), down 9.3% year-over-year and 8.8% quarter-over-quarter, with gross margin at 41.5%. Operating income was $788 million, down 41% year-over-year and about 43% quarter-over-quarter, yielding an operating margin of roughly 7.0% and a net income of $794 million (net margin ~7.0%). Earnings per share stood at $1.61. The company generated solid operating cash flow of approximately $2.06 billion and free cash flow of about $1.92 billion, ending the period with roughly $8.96 billion in cash and short-term investments. Total debt stood at $12.101 billion, with net debt around $3.141 billion, and liquidity metrics remain healthy (current ratio ~2.19, quick ratio ~1.52). Nike continued to allocate capital toward buybacks (net stock repurchases of about $883 million) and dividends (about $562 million), underscoring a robust balance sheet and a disciplined approach to shareholder returns.
Near-term momentum reflects a softer demand environment and currency/revenue mix challenges, contributing to margin pressure. However, Nike retains a premier brand position, a substantial cash-generating engine, and a clear path to optimize through direct-to-consumer expansion, inventory discipline, and ongoing product innovation. The absence of explicit forward guidance in the provided materials means investors should watch for management commentary on demand normalization, channel mix, and margin recovery in coming quarters. Overall, the setup combines solid cash generation with moderate near-term earnings risk, supporting a cautiously constructive view calibrated to evolving consumer demand and operational execution.
Key Performance Indicators
QoQ: -13.25% | YoY:-15.95%
QoQ: -43.06% | YoY:-41.02%
QoQ: -31.73% | YoY:-32.25%
QoQ: -30.30% | YoY:-30.30%
Key Insights
Revenue: $11.269B (YoY -9.33%, QoQ -8.78%)
Gross Profit: $4.675B (YoY -15.95%, QoQ -13.25%)
Gross Margin: 41.49%
Operating Income: $0.788B (YoY -41.02%, QoQ -43.06%)
Operating Margin: ~6.99%
Net Income: $0.794B (YoY -32.25%, QoQ -31.73%)
Net Margin: ~7.05%
EPS: $1.61 (YoY -30.30%, QoQ -30.30%)
...
Financial Highlights
Revenue: $11.269B (YoY -9.33%, QoQ -8.78%)
Gross Profit: $4.675B (YoY -15.95%, QoQ -13.25%)
Gross Margin: 41.49%
Operating Income: $0.788B (YoY -41.02%, QoQ -43.06%)
Operating Margin: ~6.99%
Net Income: $0.794B (YoY -32.25%, QoQ -31.73%)
Net Margin: ~7.05%
EPS: $1.61 (YoY -30.30%, QoQ -30.30%)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.27B |
-9.33% |
-8.78% |
| Gross Profit |
4.68B |
-15.95% |
-13.25% |
| Operating Income |
788.00M |
-41.02% |
-43.06% |
| Net Income |
794.00M |
-32.25% |
-31.73% |
| EPS |
1.61 |
-30.30% |
-30.30% |
Key Financial Ratios
operatingProfitMargin
6.99%
operatingCashFlowPerShare
$3.64
freeCashFlowPerShare
$3.47
dividendPayoutRatio
74.8%
Management Commentary
No earnings-call transcript data provided in the supplied materials. Consequently, no management quotes or theme-based highlights could be drawn from the transcript itself.
Forward Guidance
There is no explicit forward guidance in the provided data. Quantitatively, the Q3 results show a meaningful year-over-year and sequential decline in revenue and profitability, suggesting near-term headwinds from demand softness and margin pressure. Qualitatively, Nike’s near-term guidance, if issued, would likely hinge on: 1) demand stabilization across key geographies and product categories, 2) continued monetization of direct-to-consumer channels and digital platforms, 3) inventory normalization and supply-chain efficiency to support gross margin recovery, and 4) prudent capital allocation to balance dividends and share repurchases with cash-generation strength. Investments to monitor include progression of Nike Direct/DTC penetration, value-creation through product innovation, and potential normalization of input costs. Key factors for investors to watch: trajectory of revenue trends in core markets, gross margin stabilization or expansion, and the tempo of capital return relative to free cash flow generation.