Summary by Futu AI
Nike, Inc. reported a modest 1% increase in total revenues for the second quarter of fiscal 2024, reaching $13.4 billion, with a notable 170 basis point increase in gross margin to 44.6%. The company's net income rose by 19% to $1.58 billion, and diluted earnings per share increased by 21% to $1.03. Nike Direct revenues grew by 6%, representing approximately 45% of total Nike Brand revenues. Despite a decrease in inventories by 6% compared to May 31, 2023, the company returned approximately $1.7 billion to shareholders through share repurchases and dividends. Nike's business development saw the completion of the sale of its entities in Argentina and Uruguay, resulting in a net loss of approximately $550 million. Looking ahead, Nike announced an enterprise initiative to accelerate future growth, which includes streamlining the organization and is expected to incur pre-tax restructuring charges of $400 million to $450 million. The company continues to focus on innovation, consumer connections, and digital transformation to drive long-term revenue growth.