NIKE, Inc. reported second quarter revenues of $12.4 billion, showing a 1% increase on a reported basis.
Wholesale revenues rose by 8% to $7.5 billion, while NIKE Direct revenues fell by 8% to $4.6 billion.
Gross margin decreased to 40.6%, a 300 basis point drop from the previous period.
Revenue Performance
NIKE Brand revenues increased by 1% to $12.1 billion, primarily driven by growth in North America.
Direct vs. Wholesale Revenue
While wholesale revenues saw an 8% increase, NIKE Direct revenues declined by 8%, mainly affected by decreases in digital and store sales.
Income Decline
Net income for the quarter was $0.8 billion, down 32% from the same period last year.
- NIKE is focused on strategic actions to drive long-term growth and profitability despite challenges in revenue streams.
- The company's shift towards digital sales is crucial amid changing consumer preferences and market dynamics.
NIKE's second quarter results reflect a mixed performance with revenue growth in some segments offset by declines in others. The company's focus on brand resilience and strategic realignment will be instrumental in navigating the evolving market landscape.