NIKE(NKE) Seeking Alpha· Seeking Alpha·2024-06-28 13:36Core Viewpoint - Nike's Q4 FY24 earnings report revealed a 1% revenue growth year-over-year, but the company cut its full-year guidance, expecting mid-single-digit sales declines in FY25, leading to a significant drop in share price [2][11] Group 1: Financial Performance - Nike's total revenue for FY24 was 3.73, with SG&A expenses reduced by 7% year-over-year [7][8] Group 2: Product and Market Focus - The company is shifting its focus towards performance sports, with double-digit growth in basketball and fitness apparel, while lifestyle products have seen a decline [5][6] - Nike plans to accelerate innovation and reduce the number of lifestyle products to improve growth rates in that segment [11] - Digital sales declined across all geographies except China, impacting overall revenue growth [12] Group 3: Geographic Performance - North America revenue declined by 1%, while EMEA remained flat, and Greater China and Asia Pacific & Latin America grew by 8% and 5%, respectively [12] - North America contributed nearly 88% of total earnings before income taxes, growing 7% year-over-year [7] Group 4: Future Outlook - For FY25, Nike expects a mid-single-digit revenue decline as it navigates macroeconomic uncertainties and adjusts its product cycle [14] - The company anticipates slight improvements in gross margins and a modest increase in SG&A expenses as it invests in demand creation [15] - Projected diluted EPS for FY27 is 3.85 when discounted at 10% [17]