Nike is one of the biggest and most well-known sportswear companies in the world, recognized for its creativity in design and marketing. It started as Blue Ribbon Sports in 1964 and became Nike in 1971. The brand is a global leader in footwear, clothing, and sports gear, focusing on high-performance products for sports like running, basketball, and soccer. Nike invests in innovative technologies, such as Flyknit and Air Max, and uses a direct-to-consumer approach through its online platforms and app to connect with customers and rely less on other retailers.
Financially, Nike is a top player with strong revenues supported by effective marketing, athlete endorsements, and a powerful brand image. Its iconic “swoosh” logo and “Just Do It” slogan symbolize excellence in sports. The company also benefits from a wide supply chain, an efficient global distribution system, and its efforts to use eco-friendly materials in some products. By combining cultural relevance with innovative design, Nike stays ahead in the sports and fashion industries.
Nike Fiscal Q2 2025
NIKE (NKE) shared its financial results for the third quarter of fiscal 2025, which ended on February 28, 2025.
The company reported revenues of $11.3 billion, a decrease of 9% compared to the previous year, but still surpassing expectations. NIKE Direct revenues dropped by 12%, while wholesale revenues fell by 7%.
The gross margin narrowed to 41.5%, reflecting a decrease of 330 basis points. Additionally, diluted earnings per share were $0.54, which came in above estimates.
Highlights:
- Nike earned $11.3 billion in revenue, 9% less than last year.
- Nike Brand revenue was $10.9 billion, down 9%, with declines in all regions.
- Nike Direct sales were $4.7 billion, down 12%, due to a drop in online sales and store sales.
- Wholesale revenue was $6.2 billion, down 7%.
- Gross margin (profit from sales) was 41.5%, lower due to bigger discounts, outdated inventory, and higher costs.
- Total expenses for running the company were $3.9 billion, 8% less than last year.
- Marketing costs rose by 8%, reaching $1.1 billion.
- Tax rate was 5.9%, much lower than last year’s 16.5% due to U.S. tax changes.
- Net income (profit) was $0.8 billion, 32% lower than last year.
- Earnings per share (amount shareholders earn) was $0.54, a drop of 30%.
Nike has consistently increased its dividend payments for 23 consecutive years. In the third quarter, the company paid $594 million in dividends, marking a 6% rise compared to the previous year.
Additionally, Nike repurchased 6.5 million shares worth $499 million as part of its ongoing four-year, $18 billion buyback program initiated in 2022. To date, the program has retired 119.3 million shares, totaling approximately $11.8 billion.
Nike’s Board Statement
Elliott Hill, President and CEO of NIKE, expressed his confidence in the company’s progress toward the “Win Now” strategic priorities set 90 days prior. He highlighted the positive impact made during the quarter. Also, he emphases how NIKE led with sport through athlete storytelling, performance products, and significant sporting moments.
Matthew Friend, Executive Vice President and Chief Financial Officer of NIKE, shared that the outlook for the second half of fiscal 2025, guided by the “Win Now” initiatives, remains in line with previous forecasts. He acknowledged the dynamic operating environment but underscored the importance of serving athletes through innovative products and revitalizing brand momentum via sport.
Impact of Earning on Stock
Nike’s stock has fallen to its lowest point in five years, dropping 6.9% (below $69 per share) after its Q3 2025 earnings report. Even though Nike surpassed expectations for revenue and earnings, concerns about declining sales, lower profits, and weak performance in key areas like China caused investors to worry, leading to the drop in stock value.
NKE fell below the strong support of $69 and is now heading toward the next support level at $60.
