Nike reported QQ1 2024 revenue of $11.589 billion, marking a YoY decline of 10.4% and a QoQ decline of 8.1%. Gross margin remained resilient at approximately 45.36%, yielding a gross profit of $5.257 billion, while operating margin stood at 10.4% and net margin at 9.1%. Net income reached $1.051 billion with an EPS of $2.08, but operating cash flow swung negative to -$66 million and free cash flow was -$319 million, signaling working capital headwinds and a shift in cash generation dynamics despite solid profitability. Nike preserves a robust liquidity position with cash and short-term investments totaling roughly $8.79 billion and total debt of $12.18 billion, leaving a net debt of about $6.00 billion. The balance sheet remains solid, yet elevated leverage, working capital intensity, and a negative near-term operating cash flow highlight the need for disciplined capital allocation and improved cash generation going forward. The quarter underscores Nike’s ongoing need to balance revenue recovery with efficiency gains, selective investment (notably in direct-to-consumer channels and digital platforms), and cash flow restoration to support dividends and buybacks while maintaining strategic flexibility.