Executive Summary
Nike delivered a solid cash generation profile in QQ4 2024, underpinned by margin discipline and favorable operating leverage despite a modest topline drift. Revenue for the quarter stood at $12.606 billion, down 1.71% year over year but up 1.42% on a sequential basis, reflecting a resilient demand environment and channel mix stability. Gross profit reached $5.634 billion with a gross margin of 44.7%, while operating income of $1.585 billion produced an operating margin of 12.57%, marking a meaningful year-over-year expansion (YoY operating income up ~60.9%) and a solid QoQ gain of ~18.6%. Net income was $1.50 billion with diluted EPS of $0.99, up 45.5% YoY and 28.6% QoQ, highlighting profitability leverage even as revenue faced pressures.
Nike’s balance sheet showcases a robust liquidity position and a strong cash generation engine. Cash and cash equivalents stood at $9.86 billion with short-term investments of $1.72 billion, placing total cash-related assets around $11.58 billion. Total debt was reported at $11.95 billion, yielding a net debt position that is modestly negative in the data (-$2.09 billion), accompanied by substantial free cash flow of $2.406 billion for the quarter and operating cash flow of $2.619 billion. Free cash flow per share was $1.59, and the company returned capital to shareholders via buybacks of $1.036 billion and dividends of $0.56 billion. The balance sheet also demonstrates healthy liquidity ratios (current ratio 2.40, quick ratio 1.69) and a prudent capital structure (debt to capital ~45.3%).
From a strategically focused standpoint, Nike reinforced its durable brand position and continued to generate compelling cash returns, supporting an attractive long-term value proposition for investors. While the topline faced a YoY decline, the combination of margin resilience, disciplined cost management, and substantial free cash flow supports ongoing dividend and buyback capacity and leaves room for strategic investments in direct-to-consumer (DTC) initiatives and digital platforms. Note: The earnings call transcript was not provided in the dataset, so management quotes and call highlights could not be incorporated here. Investors should consult the official transcript for verbatim guidance and nuanced color from leadership.
Key Performance Indicators
Key Insights
Revenue: $12.606B (YoY -1.71%, QoQ +1.42%)
Gross Profit: $5.634B, Gross Margin: 44.7%
Operating Income: $1.585B, Operating Margin: 12.57%
Net Income: $1.50B, Net Margin: 11.90%
EPS (Diluted): $0.99 (YoY +47.76%, QoQ +28.57%)
EBITDA: $1.750B, EBITDA Margin: 13.88%
Tax Rate: 13.1%
Cash Flow and Balance Sheet
Operating Cash Flow: $2.619B; Free Cash Flow: $2.406B; CapEx: $213M
Cash and Cash Equivalents: $9.86B; Short-Term Investments: $1.72B; Total Cash & ST Investments: $11.58B
Total Debt: $1...
Financial Highlights
Revenue: $12.606B (YoY -1.71%, QoQ +1.42%)
Gross Profit: $5.634B, Gross Margin: 44.7%
Operating Income: $1.585B, Operating Margin: 12.57%
Net Income: $1.50B, Net Margin: 11.90%
EPS (Diluted): $0.99 (YoY +47.76%, QoQ +28.57%)
EBITDA: $1.750B, EBITDA Margin: 13.88%
Tax Rate: 13.1%
Cash Flow and Balance Sheet
Operating Cash Flow: $2.619B; Free Cash Flow: $2.406B; CapEx: $213M
Cash and Cash Equivalents: $9.86B; Short-Term Investments: $1.72B; Total Cash & ST Investments: $11.58B
Total Debt: $11.95B; Net Debt: -$2.09B (net cash position in the dataset)
Shareholder Returns: Buybacks $1.036B; Dividends Paid $0.56B
Liquidity: Current Ratio 2.40; Quick Ratio 1.69; Cash Ratio 0.93
Valuation Context (as of QQ4 2024): P/E ~24x; P/S 11.42x; Dividend Yield ~0.39%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
12.61B |
-1.71% |
1.42% |
| Gross Profit |
5.63B |
0.70% |
1.29% |
| Operating Income |
1.59B |
60.91% |
18.64% |
| Net Income |
1.50B |
45.49% |
27.99% |
| EPS |
0.99 |
47.76% |
28.57% |
Key Financial Ratios
operatingProfitMargin
12.6%
operatingCashFlowPerShare
$1.73
freeCashFlowPerShare
$1.59
dividendPayoutRatio
37.3%
Management Commentary
No earnings call transcript provided in the dataset; transcript highlights could not be generated. Note: When transcript data is available, group insights by themes such as strategy, operations, market conditions, and macro factors, with context and implications for investors.
Forward Guidance
No formal forward guidance is provided in the data. Given Nike’s operating momentum and cash generation, investors should monitor: (1) direct-to-consumer and digital penetration and its impact on gross and operating margins, (2) currency headwinds and international (notably Greater China) demand dynamics, (3) inventory levels and management discipline as macro conditions evolve, and (4) capital allocation pace including potential further buybacks and dividend changes. Management historically emphasizes a durable brand, product innovation, and a disciplined cost structure as key drivers of long-term profitability; the achievability of such targets will hinge on macro stability and supply chain efficiency.