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Nike Are Introducing $100-and-Under Sneaker Line Amid Stock Plunge

Nike 2024 financial results
Originally Published28 Jun 2024

had a good few years of growth, especially since The Last Dance documentary aired in 2020, but the Swoosh have been under constant criticism from the sneakersphere, and have not helped their image of financial health. With the release of the 2024 financial year results, we can see just how much resuscitation Nike needs.

Nike’s total revenue for FY24 was $51.4 billion, which is only a 1 per cent increase on the $51.2 billion in FY2023, and their fourth quarter revenue was flat compared to the same period last year. This may seem extremely bleak compared to their 9.7 per cent growth last year; however, in general, a solid growth rate for a company is one that is higher than the overall growth rate of the economy, so if we take the GDP growth of the US into account, which is currently sitting at 1.4 per cent, then Nike’s 1 per cent looks pretty average for the economic outlook. It’s also important to consider the growth of the past five years, of which Nike had very solid rates for a billion-dollar company, sitting at 37 per cent from 2020–2024.

This growth was spurred on by the release of The Last Dance, as it reinvigorated interest in retro and therefore presented the brand with the golden opportunity for mass re-releases (which they definitely did and still are taking advantage of). In 2020 and 2021, when most companies were hit by COVID or still making a comeback, reported 19.4 per cent and 29.2 per cent growth in revenue, respectively. In 2024, this growth has definitely slowed, with a modest 6 per cent increase to reach $6.98 billion. On the other hand, the other brand under Nike's umbrella, , reported a 17 per cent decrease compared to last year, only bringing in $2.1 billion.

2024 wasn’t a great year for Nike and it’s not possible to compare to their competitors just yet, so it’s uncertain whether this stagnant growth will be felt across the industry as a whole. But what is certain is that even though the Swoosh might be losing their curve, they’re not flatlining just yet.

Nike’s revenue still dwarfs that of competitors and is more than , , and combined (as of 2023). This of course doesn’t guarantee their growth and success, especially in the face of the 2 per cent of layoffs in the past year and the cost of running a business that big, so their long-term future will be determined by their actions and releases from here on out.

On securing their future, President & CEO John Donahoe has said, ‘We are taking our near-term challenges head-on, while making continued progress in the areas that matter most to NIKE's future – serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace. I'm confident that our teams are lining up our competitive advantages to create greater impact for our business.’

On a final positive note, Nike did report a significant increase in their gross margin and net income, which essentially means the cost cutting measures they are taking to improve the financial health of the business are working.

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