“Last, we can now see around the corner on the transitory cost headwinds that pressured profitability in fiscal 2022 and 2023.”

In context

“e partnered with Adobe to enable 1-to-1 member personalization, driving gains in member retention, click through rates, and conversion, resulting in higher demand per member and returns on digital ad spend. We're only beginning to operationalize these new capabilities and consumer experiences on our digital platforms and we see even greater opportunity to come. Third, we see meaningful growth potential in our international markets. This includes Korea, one of our most digitally connected markets, Central and South America, a region with a deep love of sport, Southeast Asia and India, with one of the world's largest youth populations. And, of course, China, where young consumers are seeking our top product innovation, and Gen Z is coming of age as the country's most active generation ever. Last, we can now see around the corner on the transitory cost headwinds that pressured profitability in fiscal 2022 and 2023. When combined with our structural opportunities to improve profitability as we grow, we are confident that we will deliver above average margin improvement in fiscal 2024 with many of the drivers continuing into fiscal 2025. Now, let me turn into our NIKE, Inc. fourth quarter results. In Q4 NIKE, Inc. revenue grew 5% on a reported basis and 8% on a currency neutral basis. NIKE Direct grew 18% with 14% growth in NIKE Digital, and 24% growth in NIKE Stores. Wholesale grew 2%, moderating as planned, as we tightened supply to normalize marketplace inventory levels. Gross margins declined a 140 basis points to 43.6% on a reported basis, primarily due to higher product input costs and elevated freight and logistics expenses. Higher markdowns, and 100 basis points of unfavorable changes in net f”