Nike Inc

Latest Results (23.10.2025):

Nike Inc reported its first quarter financial results for fiscal year 2026, ending August 31, 2025. The company achieved revenues of $11.7 billion, reflecting a slight increase on a reported basis but a decrease when adjusted for currency fluctuations. Despite challenges in certain segments, Nike demonstrated resilience with steady wholesale growth and continued returns to shareholders.

Revenue Performance

Overall revenues reached $11.7 billion, marking a 1% increase on a reported basis compared to the same quarter last year. However, on a currency-neutral basis, revenues declined by 1%, highlighting the impact of foreign exchange fluctuations on the company's sales.

Segment Highlights

NIKE Direct revenues fell by 4% reported and 5% currency-neutral, driven by decreases in digital sales and retail store performance. In contrast, wholesale revenues saw a robust 7% increase reported and 5% on a currency-neutral basis, underscoring strength in third-party partnerships.

Gross Margin Decline

The gross margin decreased significantly by 320 basis points to 42.2%, primarily due to lower average selling prices influenced by higher discounts, an unfavorable channel mix, and increased tariffs in North America.

Earnings and Profitability

Net income declined by 31% to $0.7 billion, and diluted earnings per share decreased by 30% to $0.49. The effective tax rate rose to 21.1% from 19.6% year-over-year, partly due to reduced benefits from stock-based compensation.

Shareholder Returns

Nike continued its commitment to shareholder returns by distributing approximately $714 million in the first quarter, which includes a 6% increase in dividends and ongoing share repurchases under its approved buyback program.