Nike’s net profit for the year decreased by 16% – Kommersant
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The revenue of the American company Nike for the financial year 2023, which ended at the end of May, increased by 10%, to $51.2 billion. Net profit during this period decreased by 16%, to $5.1 billion. Such Nike data introduced in the report published on Thursday, June 29.
In the fourth quarter, revenue increased by 5% to $12.8 billion, while net income fell by 28% to $1 billion. Nike also reported on forecasts: the company expects low single-digit revenue growth in percent in the first quarter from 5.8%, expected by analysts, according to Refinitiv.
Not too good results of the company reflect, among other things, the slowdown in sales in the US, which analysts attribute to inflationary pressure. Revenue growth there amounted to only 5% – this is the lowest level in a year. At the same time, sales in China rose significantly – by 16% – after declining in the first three quarters.
Another challenge for the company is that its inventory remains above normal. This is due to disruptions in supply chains, which caused Nike, like other companies, to build up inventories. “In our view, Nike has fallen into a trap in terms of the level of stock it has ordered; it may have been too slow to respond to a more sluggish level of growth associated with the difficulties of the consumer economy,” said Neil Saunders, managing director of analytics company GlobalData.
Nike shares fell 3.5% after the publication of financial statements.
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