NIKE, Inc. stock research
FY2024 Q1
NIKE (NKE) Gross Margin — Quarter Ended Aug 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable relative to the prior quarter and higher year over year. Gross margin improved sequentially but weakened slightly versus the year-ago period.
Gross margin takeaway
Quarter ended Aug 31, 2023 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable relative to the prior quarter and higher year over year. Gross margin improved sequentially but weakened slightly versus the year-ago period.
- The sequential improvement in gross margin was the strongest observable driver, as revenue growth outpaced cost of revenue growth. This indicates better cost leverage in the current quarter.
- Compared to the prior quarter, gross margin improved from a lower level. Versus the same quarter last year, gross margin was slightly lower, reflecting a mixed performance.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.2%
Gross profit
$5.7B
Revenue
$12.9B
Cost of revenue
$7.2B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-0.1 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% |
| Aug 31, 2023 | $12.9B | $5.7B | $7.2B | 44.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2023
+0.6 pts
Year-over-year change
Aug 31, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was the strongest observable driver, as revenue growth outpaced cost of revenue growth. This indicates better cost leverage in the current quarter.
Compared to the prior quarter, gross margin improved from a lower level. Versus the same quarter last year, gross margin was slightly lower, reflecting a mixed performance.
Monitor the trend in cost of revenue relative to revenue, as any acceleration in cost growth could pressure gross margin.