NIKE, Inc. stock research
FY2023 Q4
NIKE (NKE) Gross Margin — Quarter Ended May 31, 2023
Revenue increased from both the prior quarter and the year-ago quarter, driving a higher gross profit. Cost of revenue also rose, resulting in a gross margin that improved sequentially but declined compared to the same period last year.
Gross margin takeaway
Quarter ended May 31, 2023 · FY2023 Q4
Revenue increased from both the prior quarter and the year-ago quarter, driving a higher gross profit. Cost of revenue also rose, resulting in a gross margin that improved sequentially but declined compared to the same period last year.
- The strongest observable driver was the relationship between revenue growth and cost of revenue growth. This ratio shifted favorably from the prior quarter but unfavorably from the year-ago quarter.
- Compared to the prior quarter, gross margin improved as revenue grew more than cost of revenue. Compared to the same quarter a year earlier, gross margin weakened as cost of revenue grew faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.6%
Gross profit
$5.6B
Revenue
$12.8B
Cost of revenue
$7.2B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-1.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 28, 2023 | $12.4B | $5.4B | $7.0B | 43.3% |
| May 31, 2023 | $12.8B | $5.6B | $7.2B | 43.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2023
+0.3 pts
Year-over-year change
May 31, 2022
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the relationship between revenue growth and cost of revenue growth. This ratio shifted favorably from the prior quarter but unfavorably from the year-ago quarter.
Compared to the prior quarter, gross margin improved as revenue grew more than cost of revenue. Compared to the same quarter a year earlier, gross margin weakened as cost of revenue grew faster than revenue.
Monitor inventory levels and supply chain conditions, as the filing describes their impact on working capital and potential implications for future cost of revenue.