Nike reported a 10 per cent increase in FY ’23 revenues to US $ 51.2 billion, thanks in part to its emphasis on forging “deep, direct connections” with customers through utilising data insights.
However, Nike noted that higher costs throughout the period, such as the cost of sales, overhead costs, and total marketing and administration expenses, caused its yearly profits to decline 16 per cent to US $ 5 billion.
The gross margin was 43.5 per cent, down from 46 per cent a year earlier. CEO John Donahoe was unfazed by this and insisted that the team’s plan “is working.”
Donahoe continued, “FY ’23 was a milestone year for NIKE as our unique advantages continue to drive competitive separation.”
Matthew Friend, EVP and CFO, added, “FY ’23 demonstrated the power of Nike’s portfolio to fuel strong growth, year after year.”
Nike’s Q4 results show costs have offset revenue growth. Comparing the previous year to the current, total revenue increased by 5 per cent to US $ 12.83 billion, or 8 per cent on a currency-neutral basis. Compared to the prior period, gross profit rose by 2 per cent to US $ 5.6 billion (US $ 5.5 billion). To reach 43.6 per cent, the gross margin dropped by 140 basis points. In contrast to US $ 1.43 last year, net income decreased by 28 per cent to US $ 1.03 billion.
