Nike reported a resilient Q4 FY2023 performance characterized by margin strength and robust cash flow, even as revenue declined modestly year over year. Revenue came in at USD 12.606 billion, down 1.71% YoY, while gross profit reached USD 5.634 billion for a gross margin of 44.7%. Operating income was USD 1.546 billion (operating margin 12.3%), and net income USD 1.50 billion (net margin 11.9%), with diluted EPS of USD 2.95â2.97. The notable delta versus the prior year was a 56.95% YoY increase in operating income and a 45.49% YoY rise in net income, underscoring meaningful profitability leverage from cost discipline and favorable mix despite top-line headwinds. QoQ, revenue rose 1.42%, contributing to a more constructive quarterly trajectory into the next year.
Nike also demonstrated solid liquidity and cash generation: operating cash flow per share of USD 5.19 and free cash flow per share of USD 4.77, with cash per share of USD 22.96. The payout ratio stood at 37.3%, yielding a dividend and signaling ongoing capital returns to shareholders. On the balance sheet, the company exhibited a healthy liquidity position (current ratio 2.40) and moderate leverage (debt ratio 0.314; long-term debt to capitalization around 0.42). Inventory indicators show a substantial base (days of inventory outstanding â 97.1; inventory turnover 0.93) and a cash conversion cycle of roughly 92 days, suggesting working-capital dynamics to monitor as the business optimizes channels.
Looking ahead, there is no explicit forward-looking guidance in the provided data. Nevertheless, the results imply that Nike remains capable of sustaining profitability and cash flow momentum even in a modest revenue-growth environment. Investors should monitor developments in direct-to-consumer mix, digital penetration, inventory normalization, and macro factors (currencies, consumer demand, and regional dynamics) as the primary drivers of margin trajectory and growth in the coming quarters.