Nike can't sell anymore.
On June 27, local time, Nike disclosed its fourth quarter and annual results for fiscal year 2024.
According to the financial report, Nike's revenue in the fourth fiscal quarter was US$12.61 billion, with an expected revenue of US$12.86 billion, a net profit of US$1.5 billion, and an expected US$1.276 billion, with a gross profit margin of 44.7% versus an expected 45.3%.
Nike Group's full-year revenue for fiscal year 2024 was $51.4 billion, an increase of about 1% year-on-year; Net profit was US$5.7 billion, an increase of about 12% year-on-year.
In terms of regions, in North America, Nike's footwear revenue for the year was 14.537 billion US dollars, a year-on-year decrease of 2%; In Europe, the Middle East and Africa, Nike's apparel business revenue for the year was $4.38 billion, down about 6% year-on-year.
In Greater China, Nike's footwear, apparel and other revenues were 7.545 billion US dollars, an increase of about 8% year-on-year.
In addition, Nike expects the company's revenue to decline by about single digits in the fiscal year starting this month. The decline in sales was mainly due to the weakness in the fiscal first quarter, with a 10% drop in revenue expected to be more severe than expected.
The company also warned that Nike's sales in the Chinese market are weak and global consumer trends are "uneven".
After Nike's results were announced, revenue fell short of expectations, Nike's U.S. stock fell 13.53% pre-market, and finally closed down 19.98% on Friday, closing at $75.37 per share, with a market value of about $28.41 billion, or about 206.46 billion yuan.
According to public information, NIKE is a world-famous sports brand, and the company's sporting goods include clothing, footwear, sports equipment, etc.
In 1972, NIKE was founded. It was founded as Le Cordon Bleu Sports, which was invested by Coach Phil Knight, current President of NIKE, and Coach Bill Bowerman.
In 1988, Dan Wieden, founder of Wieden+Kennedy, coined the resounding slogan "Just Do It" for a new round of advertising for Nike.
In 2001, Nike developed air cushion technology and launched a new anti-shock technology called Shox, with which Nike sales continued to rise.
Since Nike entered the Chinese market in 1980 and set up the first NIKE production liaison representative in Beijing, by 2020, Nike's revenue and net profit in Greater China have increased by about 137 times and 202 times, respectively.
However, in 2021, Nike's image in the Chinese market plummeted due to the "Xinjiang cotton" incident.
At that time, some media reported that the price of the same basketball shoe of Nike in China was not only more than 500 yuan higher than that of foreign countries, but even the double air cushion in foreign countries became a single air cushion in China.
Since then, foreign brands represented by Nike have gradually failed to be sought after by Chinese consumers, and have begun to decline in the Chinese market, and domestic brands have begun to rise.
According to the sneaker recommendation index of Chinese customers released by chnbrand not long ago, Nike Adi, which has been in the top two in recent years, has been surpassed by Li Ning and Hongxing Erke.
Source: Caiwen Agency