Sports apparel giant Nike has reported an increase in revenues to $12.4bn (£9.85bn), crediting “innovation” and “brand storytelling” for the growth.
Its latest results for its third quarter ending 29 February 2024, showed strategic pricing and lower logistics costs helped Nike to improve its gross margin by 150 basis points to 44.8%.
Matthew Friend, executive vice president & chief financial officer, Nike said: “Our teams are focused on what matters most to return to strong growth. We are taking action to build a faster, more efficient Nike and maximise the impact of our new innovation cycle.”
Nike Direct revenues were slightly up at $5.4bn (£4.3bn), with wholesale revenues increasing by 3% to revenues of $6.6bn (£5.2bn). However, Nike Brand Digital sales decreased 3%.
“We are making the necessary adjustments to drive Nike’s next chapter of growth,” added John Donahoe, president & CEO, Nike.
“We’re encouraged by the progress we’ve seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace.”
The brand is planning multiple product launches and a marketing campaign during the 2024 Paris Olympics.
“Our brand storytelling will leverage our athletes and sport moments to become sharper and bolder, beginning with the Olympics this summer,” added Donahoe.
An exclusive company profiled in the RetailX Global Elite Top1000 report tracks Nike’s growing online sales due to the company’s shift in focus to a direct-to-consumer strategy.
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