Nike Unveils Fiscal 2023 Fourth Quarter and Full Year Financial Results
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NIKE, Inc. has released its financial results for the fourth quarter and full fiscal year 2023, which ended on May 31, 2023.
The full-year revenues amounted to $51.2 billion, showing a 10% increase compared to the previous year and a 16% increase on a currency-neutral basis. The fourth-quarter revenues were reported as $12.8 billion, indicating a 5% rise compared to the previous year and an 8% increase on a currency-neutral basis.
NIKE Direct generated revenues of $5.5 billion in Q4, demonstrating a 15% increase compared to the prior year and an 18% increase on a currency-neutral basis. That being said, wholesale reported revenues of $6.7 billion, reflecting a 2% decline compared to the prior year but a 2% increase on a currency-neutral basis.
“NIKE’s strong results make clear that our strategy is working,” said John Donahoe, President and CEO of NIKE, Inc. “FY23 was a milestone year for NIKE as our unique advantages continue to drive competitive separation. Our investment in innovation and our digital leadership are fueling broad-based growth across our portfolio of brands, as we create value by serving the future of sport.”
Meanwhile, Converse reported revenues of $586 million, a 1 percent decrease on a reported basis but a 1 percent increase on a currency-neutral basis. The decline in Europe was offset by double-digit growth in Asia.
Upon further analysis, the gross margin decreased by 140 basis points to 43.6 percent, primarily due to higher product input costs, elevated freight and logistics costs, higher markdowns, and unfavorable changes in net foreign currency exchange rates. However, strategic pricing actions and the comparison to higher inventory obsolescence reserves in Greater China partially offset these factors.
Source: NIKE, Inc. Reports Fiscal 2023 Fourth Quarter and Full Year Results
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