Nike grew its global annual sales by 10 percent to $51.2 billion for the fiscal year ended May 31 but realized a 16 percent drop in net income to $5.07 billion. FY direct sales increased by 20 percent on a constant-currency basis to more than $21.3 billion, including a 24 percent jump for digital and 14 percent improvement from stores. Annual wholesale revenues rose by 7 percent to $27.4 billion. Both men’s (+10%) and the Jordan Brand (+29%) posted double-digit sales gains last year to $20.7 billion and $6.6 billion, respectively. Global Nike brand footwear sales stepped 14 percent higher to more than $33.1 billion.

In North America, units and average selling prices (ASPs) were higher last year as total revenues increased 18 percent to $21.6 billion, including a 22 percent gain for footwear to $14.9 billion and an 8 percent improvement in annual apparel sales to $5.9 billion. The group, which calls the running category “a competitive battlefield,” generated 10 percent sales growth from the footwear segment last year as it initiated a strategy to “re-invigorate” assortments ahead of the Paris Olympics in 2024 with performance, every day run, and lifestyle products.

Nike, which ended the fiscal year with a flat inventory level of $8.45 billion that included a high-single digit drop in North America, is eyeing global revenue growth in the mid-single digits for FY24 that commenced on June 1.

Nike x Vibram: In other Nike news, Vibram and Nike recently announced a new partnership with Nike using Vibram tech and sole designs in its trail footwear, beginning with the Ultrafly Trail, which will debut Vibram's Litebase technology in a Nike running shoe. The Ultrafly Trail will be available in limited quantities in Europe beginning July 27 with wider global distribution in late January 2024 at nike.com and select specialty retailers.