Nike’s fiscal 2024 fourth quarter (QQ4 2024) demonstrated a transitional year-end as the company returned to offense after a challenging period. Revenue for the quarter was $12.606 billion, flat on a currency-neutral basis, with notable pressure from Digital and Lifestyle declines offsetting strength in Performance. Gross margin expanded 110 basis points to 44.7%, driving operating margin to 12.6% and an EPS of $0.99. For the full year, revenue was flat on a reported basis and up 1% currency-neutral, with diluted EPS up 15%. The quarter featured meaningful progress in core athletic categories and a disciplined emphasis on supply-side optimization, pricing strategy, and profitability rather than top-line growth alone.
Management outlined a deliberate, multi-year comeback plan anchored in four pillars: (1) sharpening the focus on sport, (2) accelerating pace and scale of newness and innovation, (3) driving bigger, bolder brand storytelling, and (4) elevating marketplace execution to improve brand distinction. A central component is the Speed Lane initiative—an evolution of Nike’s Express Lane approach designed to shorten design-to-market cycles and accelerate testing and production through partner ecosystems and the Bowerman Lab. Management signaled that the initial cadence of next-gen franchises (Pegasus 41, Peg Premium, Vomero 18) and the Air Max/Signature programs will begin to contribute more meaningfully in H2 FY2025, with further innovation across running, basketball, and lifestyle franchises.
The company’s guidance reflects a sector-wide normalization to slower growth in the near term, with fiscal 2025 revenue expected to decline mid-single digits, and the first half toward high-single digits negative. FX headwinds have intensified, adding roughly 1 percentage point of revenue pressure, while gross margin is anticipated to rise modestly (10–30 bps) on mix and pricing benefits. Nike plans to reinvest nearly $1 billion into consumer-facing activities in FY2025 to rebuild momentum, including expanded ground-game efforts, increased design and merchandising resources, and higher brand marketing in connection with EC24 and the Paris Olympics. Investors should focus on (i) the pace and scale of new product introductions and the speed with which they convert into retail sales, (ii) the durability of margin expansion amid franchise rationalization, and (iii) the trajectory of Nike Digital and wholesale channel mix as the company works to rebalance the portfolio over the next 18–24 months.