Growth falters after an exceptional fiscal year 2023, driven mainly by easing Covid restrictions in China and the success of new running ranges in the US.

In the first quarter of fiscal 2024, consolidated sales were up by just 2% on the same period last year.

Sales in the EMEA and China regions rose by 8% and 5% respectively. It's in North America that things are starting to stall, with sales down by 2%.

This would seem to confirm the downturn in US consumption seen everywhere else - and which some are quick to refer to as the canary in the global economic mine.

Operating margins remain squeezed by rising production costs and advertising budgets linked to new direct-to-consumer offers.

Indeed, Nike intends to increase the share of direct sales - notably through the ramp-up of its online platform - in relation to that occupied by distributors, who are overly demanding in terms of the discounts they request.

Consolidated profit remained stable, down 1%. It's worth remembering that Nike's first fiscal quarters - corresponding to the summer season - are traditionally its most profitable.

The entire $1.5 billion profit was returned to shareholders, two-thirds via the mega $18 billion share buyback program approved last year, of which $6 billion has so far been executed.

These share buy-backs were carried out at an average price of $110 per share, representing an earnings multiple of around x30 - or an earnings yield of 3.3% - based on the average of the last three financial years.

Such a management strategy makes perfect sense if Nike succeeds over the next decade in doubling its sales, as it did over the 2013-2023 cycle. However, such a feat can only be achieved if the new direct-to-consumer strategy is a resounding success.