Sneaker and athletic apparel company Nike (NKE) has reported fourth-quarter 2024 financial results that beat Wall Street’s targets on the top and bottom lines.
The Oregon-based company announced Q4 2024 earnings per share (EPS) of $0.54 U.S., which was far ahead of the $0.30 U.S. consensus expectation of analysts.
Revenue in the quarter came in at $11.27 billion U.S., which topped the $11.01 billion U.S. forecast on Wall Street.
The strong results come even though Nike’s overall sales during the year-end holiday quarter fell 9% from the same period in 2023.
Continued weakness in China was blamed for the sales decline. Sales in China during the final months of last year plunged 17% amid an economic slowdown in the nation of 1.4 billion people.
Nike CEO Elliott Hill said in the company’s earnings statement that progress is being made on the “Win Now” turnaround strategy that focuses on sports and athlete storytelling.
Nike pulled its guidance during its previous earnings report last October, and the company did not provide detailed guidance as part of its latest financial results.
However, during an earnings call with analysts and media, Nike warned that its sales are likely to drop by a double-digit percentage in the current first quarter of the year.
Management said that the company is facing challenges from import tariffs, as well as deteriorating consumer confidence, and a slower than expected turnaround.
Nike’s stock has declined 27% over the last 12 months and is down a further 6% following the grim forecast provided by management.
The company’s share price is set to open trading today (March 21) at $67.34 U.S. per share.
