NIKE, Inc. stock research
FY2024 Q4
NIKE (NKE) Gross Margin — Quarter Ended May 31, 2024
Revenue and cost of revenue both increased from the prior quarter, while gross profit remained stable, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue was lower and cost of revenue decreased, with gross profit unchanged and gross margin improved.
Gross margin takeaway
Quarter ended May 31, 2024 · FY2024 Q4
Revenue and cost of revenue both increased from the prior quarter, while gross profit remained stable, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue was lower and cost of revenue decreased, with gross profit unchanged and gross margin improved.
- The gross margin improved year over year, driven by a reduction in cost of revenue relative to revenue. The strongest observable driver is the lower cost of revenue compared to the prior year quarter, which supported margin expansion.
- Compared to the immediately preceding quarter, gross margin weakened slightly as revenue growth was matched by a proportional increase in cost of revenue. Versus the same quarter one year earlier, gross margin improved, with revenue declining but cost of revenue declining more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.7%
Gross profit
$5.6B
Revenue
$12.6B
Cost of revenue
$7.0B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| Aug 31, 2023 | $12.9B | $5.7B | $7.2B | 44.2% |
| Nov 30, 2023 | $13.4B | $6.0B | $7.4B | 44.6% |
| Feb 29, 2024 | $12.4B | $5.6B | $6.9B | 44.8% |
| May 31, 2024 | $12.6B | $5.6B | $7.0B | 44.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 29, 2024
-0.1 pts
Year-over-year change
May 31, 2023
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year over year, driven by a reduction in cost of revenue relative to revenue. The strongest observable driver is the lower cost of revenue compared to the prior year quarter, which supported margin expansion.
Compared to the immediately preceding quarter, gross margin weakened slightly as revenue growth was matched by a proportional increase in cost of revenue. Versus the same quarter one year earlier, gross margin improved, with revenue declining but cost of revenue declining more sharply.
Monitor the trajectory of cost of revenue relative to revenue, as its movement directly influences gross margin stability.