A file photo shows the Nike logo on a window at a Nike Factory Store.
Gregory Bull / AP
Nike said profits ticked up slightly from last year as the worldwide sneaker giant trims expenses, cuts workers and changes its customer service strategy.
The Washington County-based company has laid off more than 700 workers in Oregon over the last few months as part of a larger effort to save the shoemaker upwards of $2 billion over the next few years.
On Thursday, Nike reported a $5.7 billion profit for the fiscal year, which ended May 31. That’s an almost 12% increase from the $5.1 billion the company made the previous year. Revenues stayed nearly flat at $51.4 billion compared to $51.2 billion in 2023.
Nike CEO John Donahoe told shareholders the modest results show the company is making progress on its comeback from slumping online sales.
“We are taking our near-term challenges head-on, while making continued progress in the areas that matter most to Nike’s future — serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace,” Donahoe said in a statement. “I’m confident that our teams are lining up our competitive advantages to create greater impact for our business.”
The multinational firm traces its roots to Eugene in the 1960s. Long before Nike was a household name as a global apparel company, its co-founder and former CEO Phil Knight ran track at the University of Oregon, and famously sold imported running shoes from the back of his car.
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Since then, the company has become one of the most recognizable brands in the world thanks to the simple swish mark and endorsements from star athletes. It has more than 80,000 employees worldwide, according to filings with the U.S. Securities and Exchange Commission. Over 10,000 of those workers are in Oregon, making Nike’s financial health of significant interest to state economists and elected officials.
Every industry faced unique challenges during the COVID-19 pandemic, including Nike and other shoemakers. Right before global trade was thrown into chaos in March 2020, Nike welcomed John Donahoe as its new CEO. At first, Donahoe doubled down on the company’s plan to sell more directly to consumers via online platforms while pulling back from using third-party retailers like department stores.
However, analysts began raising concerns that other running shoe brands like HOKA and ASICS were challenging Nike’s market dominance. Over the last few years Nike has seen online sales go down, and the company has responded by shaking up leadership, cutting costs, and restarting partnerships with some retailers.
Related: Nike will lay off workers as part of $2 billion cost-cutting plan
During Thursday’s call, Donahoe boasted to shareholders that Nike products continue to be a staple among the world’s best athletes. Earlier this year Nike announced a signature shoe for A’ja Wilson — a two-time WNBA champion, former most valuable player and Olympic gold medalist — as women’s basketball is exploding in popularity with record viewership.
Donahoe said Wilson’s shoe adds to the lineup of current WNBA players with a signature Nike design. Former University of Oregon standout and current WNBA All-Star Sabrina Ionescu also has a Nike signature shoe, the Sabrina 1.
Overall, Nike executives painted a picture of a company poised for a comeback, but not quite there yet. Donahoe said the next year will be one of transition as the company settles into recent adjustments meant to increase profits and grow shareholder returns.
Donahoe said it will take time, but the company is already seeing momentum.
“We have work to do,” Donahoe said. “But we’re on it.”