Nike posted Q3 2024 results on the Buenos Aires listing (NKE.BA) featuring a revenue decline and meaningful margin compression, alongside resilient cash generation and an active capital-allocation program. Revenue reached $11.269 billion (USD), down 9.3% year-over-year and 8.8% quarter-over-quarter, with gross margin at 41.5%. Operating income was $788 million, down 41% year-over-year and about 43% quarter-over-quarter, yielding an operating margin of roughly 7.0% and a net income of $794 million (net margin ~7.0%). Earnings per share stood at $1.61. The company generated solid operating cash flow of approximately $2.06 billion and free cash flow of about $1.92 billion, ending the period with roughly $8.96 billion in cash and short-term investments. Total debt stood at $12.101 billion, with net debt around $3.141 billion, and liquidity metrics remain healthy (current ratio ~2.19, quick ratio ~1.52). Nike continued to allocate capital toward buybacks (net stock repurchases of about $883 million) and dividends (about $562 million), underscoring a robust balance sheet and a disciplined approach to shareholder returns.
Near-term momentum reflects a softer demand environment and currency/revenue mix challenges, contributing to margin pressure. However, Nike retains a premier brand position, a substantial cash-generating engine, and a clear path to optimize through direct-to-consumer expansion, inventory discipline, and ongoing product innovation. The absence of explicit forward guidance in the provided materials means investors should watch for management commentary on demand normalization, channel mix, and margin recovery in coming quarters. Overall, the setup combines solid cash generation with moderate near-term earnings risk, supporting a cautiously constructive view calibrated to evolving consumer demand and operational execution.