Nike Inc

Latest Results (08.03.2025):

Revenue Decline

In the fiscal 2025 second quarter, Nike Inc. reported revenues of $12.4 billion, marking an 8 percent decrease on a reported basis compared to the previous year. On a currency-neutral basis, the decline was 9 percent. This downturn was driven by declines across all geographies, impacting both the Nike Brand and Converse revenues.

Gross Margin and Expenses

Nike Inc.'s gross margin for the second quarter of fiscal 2025 decreased by 100 basis points to 43.6 percent. This decline was primarily due to higher discounts and changes in channel mix, although it was partially offset by lower product input costs and reduced warehousing and logistics expenses. Selling and administrative expenses decreased by 3 percent to $4.0 billion.

Earnings Per Share

The diluted earnings per share for Nike Inc. in the fiscal 2025 second quarter was $0.78, representing a 24 percent decrease from the previous year. This decline in earnings per share reflects the overall reduction in net income, which fell by 26 percent to $1.2 billion.

Shareholder Returns

During the fiscal 2025 second quarter, Nike Inc. returned approximately $1.6 billion to shareholders. This included dividends of $557 million, which were up 7 percent from the prior year, and share repurchases totaling $1.1 billion. The company has a four-year, $18 billion share repurchase program, under which 112.8 million shares have been repurchased as of November 30, 2024.

Outlook and Strategic Focus

Nike Inc. is focused on repositioning its business to drive long-term shareholder value, as stated by President & CEO Elliott Hill. The company is accelerating its pace and reigniting brand momentum through sport, despite the financial challenges faced in the fiscal 2025 second quarter. The leadership remains confident in the company's ability to return to growth and enhance shareholder returns.